The following table lists the 2015 and 2016 financial statements for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard motors.

a. On the basis of the information provided, calculate the following financial ratios for 2015 and 2016.

b. Considering the financial ratios you computed, along with the industry averages, how would you characterize the financial condition of Otago Bay Marine Motors? Explain.

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Otago Bay Marine Motors Balance Sheets ($ in thousands) As of December 31 2016 2015 Current assets Cash and cash equivalents Accounts receivable, net of allowances $ 56,203 S 20,656 $ 29,294 5,761 $111,914 137,273 $ 88,942 S 12,889 $ 24,845 6,536 $133,212 $ 85,024 Prepaid expenses Total current assets Property, plant, and equipment, at cost Less: Accumulated depreciation and amortization S 44,767 Net fixed assets $ 86,699 $ 40,257 51,001 $ 224,470 Other assets Total assets Liabilities and shareholders equity Current liabilities Notes and accounts payable Dividends payable Accrued liabilities $ 28,860 $ 4,927 $ 791 16,780 $ 22,498 $ 1,026 Total current liabilities S 50,862 Noncurrent liabilities Long-term debt $ 40,735 S 20,268 Shareholders' equity Common stock Capital in excess of par value Retained earnings $ 7,315 $ 111,108 S 93,920 $ 212,343 $7,103 $ 86,162 Total shareholders equity Total liabilities and equity Average number of common shares outstanding Otago Bay Marine Motors income statements ($ in thousands) S181,704 $ 224,470 10,848,000 10,848,000 For the Year Ended December 31 2016 S 259,593 $ 133 978 $125,615 2015 $245,424 $127123 $ 118,301 Sales revenue Cost of goods sold Gross profit ma Operating expenses rgin Earnings from operations Other income (expense), net Earnings Provision for income taxes S 53,517 S 47,933 3,989 $51,922 19,890 before income taxes $ 57,710 Net earnings Cash dividends (S0.35 and $0.27 per share) Average price per share of common stock (in the fourth quarter of the year) $ 3,769 $74.25 $ 2,947 $80.75 Otago Bay Marine Motors Industry Average (for 2016) 2.36 1.27 10.00 9.30 15.87 19.21 1.59 19.87 2016 2015 Current ratio Total asset turnover Debt-equity ratio Net profit margin ROA ROE EPS P/E ratio Dividend yield Payout ratio Price-to-book-value ratio