Use the financial statements below and on page 106 for Fox Manufacturing Company for the year ended December 31, 2012, along with the industry average ratios below, to:
a. Prepare and interpret a complete ratio analysis of the firm€™s 2012 operations.
b. Summarize your findings and makerecommendations.

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Fox Manufacturing Company Income Statement for the Year Ended December 31, 2012 $600,000 S140,000 $30,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses General and administrative expenses 30,000 Total operating expense S 80,000 Operating profits Net profits before taxes Net profits after taxes (earnings available Less: Interest expense S 70,000 27.100 Less: Taxes for common stockholders Earnings per share (EPS) $2.15 Industry average, 2012 Current ratio 2.35 0.87 4.55 Quick ratio 35.8 days Average collection period Total asset turnover Debt ratio Times interest earned ratio Gross profit margin Operating profit margin Net profit margin Return on total assets (ROA) Return on common equity ROE) Earnings per share (EPS) 1.09 12.3 0.135 0.167 3.10 Based on a 365-day year and on end-of-year figures. Fox Manufacturing Company Balance Sheet December 31, 2012 Assets Cash Marketable securities Accounts receivable Inventories 5 15,000 7,200 34,100 82,000 $138,300 Total current assets Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals 5 57,000 13,000 5,000 $ 75,000 $150.000 Total current liabilities Long-term debt Common stock equity (20,000 shares outstanding $110,200 73,100 $183,300 Total liabilities and stockholders' equity 408 300 Retained earnings Total stockholders' equity