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Calculate the ratios and answer the questions below. Add more space to the yellow boxes if you need to.
Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets			2019	2018
Cash and cash equivalents			$21,000	$20,000
Short-term investments			3,759	3,240
Accounts Receivable			52,500	48,000
Inventories			84,000	56,000
Total current assets			$161,259	$127,240
Net fixed assets			223,097	200,000
Total assets			$384,356	$327,240
Liabilities and equity
Accounts payable			$33,600	$32,000
Accruals			12,600	12,000
Notes payable			19,929	6,480
Total current liabilities			$66,129	$50,480
Long-term debt			67,662	58,320
Total liabilities			$133,791	$108,800
Common stock			178,440	178,440
Retained Earnings			72,125	40,000
Total common equity			$250,565	$218,440
Total liabilities and equity			$384,356	$327,240
Joshua & White Technologies December 31 Income Statements
(Thousands of Dollars)
			2019	2018
Sales			$420,000	$400,000
COGS except excluding depr. and amort.			300,000	298,000
Depreciation and Amortization			19,660	18,000
Other operating expenses			27,600	22,000
EBIT			$72,740	$62,000
Interest Expense			5,740	4,460
EBT			$67,000	$57,540
Taxes (25%)			16,750	14,385
Net Income			$50,250	$34,524
Common dividends			$18,125	$17,262
Addition to retained earnings			$32,125	$17,262
Other Data			2019	2018
Year-end Stock Price			$90.00	$96.00
# of shares (Thousands)			4,052	4,000
Lease payment (Thousands of Dollars)			$20,000	$20,000
Sinking fund payment (Thousands of Dollars)			$5,000	$5,000
Ratio Analysis			2019	2018	Industry Avg
Liquidity Ratios
Current Ratio					2.58
Quick Ratio					1.53
Asset Management Ratios
Inventory Turnover (Total COGS/Inventories)					7.69
Days Sales Outstanding					47.45
Fixed Assets Turnover					2.04
Total Assets Turnover					1.23
Debt Management Ratios
Debt Ratio (Total debt-to-assets)					20.0%
Liabilities-to-assets ratio					32.1%
Times-interest-earned ratio					15.33
EBITDA coverage ratio					4.18
Profitability Ratios
Profit Margin					8.86%
Basic Earning Power					19.48%
Return on Assets					10.93%
Return on Equity					16.10%
Market Value Ratios
Earnings per share					NA
Price-to-earnings ratio					10.65
Cash flow per share					NA
Price-to-cash flow ratio					7.11
Book Value per share					NA
Market-to-book ratio					1.72
a. Has Joshua & White's liquidity position improved or worsened? Explain.
b. Has Joshua & White's ability to manage its assets improved or worsened? Explain.
c. How has Joshua & White's profitability changed during the last year?

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