The financial statements of Access Corporation for the year ended December 31, 2012, follow. aAccess Corporations annual

The financial statements of Access Corporation for the year ended December 31, 2012, follow.

aAccess Corporation’s annual purchases are estimated to equal 75 percent of cost of goods sold.

a The firm’s 3,000 outstanding shares of common stock closed 2012 at a price of $25 per share.
a. Use the preceding financial statements to complete the following table. Assume that the industry averages given in the table are applicable for both 2011 and 2012.
b. Analyze Access Corporation’s financial condition as it relates to
(1) Liquidity,
(2) Activity,
(3) Debt,
(4) Profitability, and
(5) Market value. Summarize the company’s overall financial condition

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Access Corporation Income Statement For the Year Ended December 31,2012 Sales revenue Less: Cost of goods sold Gross profit Less operaing expenses $160,000 106.000 $54,000 Selling expense General and administrative expense Lease expense Depreciation expense $16,000 10,000 1,000 0,000 Total operating expenses Operating profit Less: Interest expense Net profit before taxes Less: Taxes @ 40% Netprofits after taxes 37.000 $17,000 6,100 $10,900 4360 Access Corporation Balance Sheet As of December 31, 2012 Assets Liabilities and Stockholders' Equity 22,000 47,000 $69,000 $ 500 Accounts payable Cash Marketable securities Accounts receivable Inventories 1,000 Notes payable 25,000 Total current liabilities 45,500 Long-term debt $ 72,000 Total liabilitie:s $ 26,000 Com S90,000 Retained eamings Total curent assets Land 91,950 31,500 26.550 mon stock a Buildings and equipment Less: Accumulated depreciation Net fixed assets Total assets 38.000 Total liabilities and stockholders $ 78,000 equity $150.000 $150.000 Access Corporation's Financial Ratios Industrv Actual Actual Average Ratio 2011 Ratio 2012 Currentratio Quick (acid-test) ratio Inventory tumover Average collection perioda Average payment perioda Debt-to-equity ratio Times interest eamed ratio Gross profit margin Net profit margin Returm on total assets (ROA) Return on common equity (ROE) Marketbook (MB) ratio 1.80 70 2.50 37 days 72 days 50% 3.8 1.84 .78 2.59 36 days 78 days 4.0 40% 3.6% 4.0% 8.0% 1.2 38 3.5% 4.0% 9.5% "Based on a 365-day year and on end-of-year figures