Problem $3-23$

Financial statement analysis. The financial statements of Zach Industries for the year ended December $31,2022,$ follow.

$\backslash$table$[[$Zach Industries Iscome Statement for the Year Ended December $31,2022],[$Sales revenue,$ $160,000],[$Less Cost of goods sold,$106,000],[$Gross profits,$ $54,000],[$Less: Operating expenses,$],[$Selling expense,$ $16,000],[$General and administrative expenses,$10,000],[$Lease expense,$1,000],[$Depreciation expense,$10\mathrm{.}000],[$Total operating expense,$ $37,000],[$Operating prefits,$ $17,000],[$Less Interest expense,$6,100],[$Net profis before taxes,$ $10,900],[$Less: Taxes,$4,360],[$Net profits after taves,$3\mathrm{.}6540]]$

Zach Indestries Balance Sleet December $31,2022$

$\backslash$table$[[$Assets$],[$Cash$,$$$,500$

a$.$ Use the preceding financial statements to complete the table below. Assume that the industry averages given in the

Number of shares cutstanding

Price per share

$\backslash$table$[[,3,000],[$$$,25]]$

Zach Industries Ratio Analysis Current ratio Quict ritio

Inventory turnoiner

Average cobection period $($days$)$

Deber ratio

Then interest earned

Gross profit margin

Net profit margin

Return on total assets

Reture en cemmon equity

Market$/$book ratio

$\backslash$table$[[\backslash$table$[[$thdustry$],[$Average$]],\backslash$table$[[$Actual$],[2021]],\backslash$table$[[$Actual$],[2022]]],[1\mathrm{.}80,1\mathrm{.}84,1\mathrm{.}04],[0\mathrm{.}70,0\mathrm{.}78,0\mathrm{.}32],[2\mathrm{.}50,2\mathrm{.}59,2\mathrm{.}31],[37\mathrm{.}5,36\mathrm{.}5,57\mathrm{.}8],[65\mathrm{.}0\%,67\mathrm{.}04\%,94\mathrm{.}6\%$