RATIO ANALYSIS The Corrigan Corporation's 2017 and 2018 financialstatements follow, along with some industry average ratios.a. Assess Corrigan's liquidity position, and determine how itcompares with peers and how the liquidity position has changedover time.b. Assess Corrigan's asset management position, and determinehow it compares with peers and how its asset managementefficiency has changed over time.c. Assess Corrigan's debt management position, and determinehow it compares with peers and how its debt management haschanged over time.d. Assess Corrigan's profitability ratios, and determine how theycompare with peers and how its profitability position has changedover time.e. Assess Corrigan's market value ration, and determine how itsvaluation compares with peers and how it has changed over time.Assume the firm's debt is priced at par, so the market value of itsdebt equals its book value. f. Calculate Corrigan's ROE as well as the industry average ROE,using this DuPont equation. From this analysis, how doesCorrigan's financial position compare with the industry averagenumbers?g. What do you think would happens to its ratios if the companymil ailed cost-culling measures that allowed it to hold lower levelsof inventory and substantially decreased the cost of goods sold? Nocalculations die necessary. Think about which ratios would beaffected by changes in these two accounts.Corrigan Corporation: Balance Sheets as of December 31   2018 2017 cash $72,000 $65,000 Account recivable 439,000 328.000 Inventories 894,000 813,000 Tount current assets $1,405,000 $1,206,000 Land and bullding 258.000 271.000 Mechinary 132.000 133,000 Other fixed assets 61.000 57,000 Total assets $1,836,000 $1,667,000 Accounts payeble $80,000 $72,706 Accured liabilities 45,010 40,880 Notes payeble 476,990 457,912 Total current liablities $602.000 $571,500 Long term dept 404,290 258,898 Common stock 575,000 575,000 Retained earnings 254,710 261,602 Total liabilities and equity $1,836,000 $1,667,000 corigan corporation: income statement for years ending December 31   2018 2017 sales  $4,240,000 $36,35,000 cost of goods sold 3,680,600 2,980,000 Gross operating profits $560,000 $655,000 General adiministrative and selling express 303,320 297,550 Depreciation 159,000 154,500 EBIT $97,680 V 201050 Interest 67,000 43,000 Earning before taxes(EBT) $30,680 $159,950 Taxes(40) 12,272 63,970 Net income $18,400 $95,970  Per share data   2018 2017 EPS $080 $417 Cash dividends $1.10 $095 Market price (average) $12.34 $23 57 P/E ratio 15.42x 5.65x Number of share outstanding 23,000 23,000 Industry Financial Ratio   2018 Current ratio 2.7* Inventory Turnover 7.0* Days sales outstanding 32.0 days Fixed assetsTurnover 13.0* Total assets turnover 2.6* Return on assets 9.1% Return on  equity 18.2% Return on invested capital 14.5% Profit margin 3.5% Debt-to-capital ratio 50.0% P/E ratio 6.0* M/B ratio 1.5 EV/EBITDA ratio 6.0 *Industry average ratios have been constant for the past 4 years. *Based on year-end balance sheet figures. *Calculation is based on a 365 day year.

RATIO ANALYSIS The Corrigan Corporation's 2017 and 2018 financial
statements follow, along with some industry average ratios.
a. Assess Corrigan's liquidity position, and determine how it
compares with peers and how the liquidity position has changed
over time.
b. Assess Corrigan's asset management position, and determine
how it compares with peers and how its asset management
efficiency has changed over time.
c. Assess Corrigan's debt management position, and determine
how it compares with peers and how its debt management has
changed over time.
d. Assess Corrigan's profitability ratios, and determine how they
compare with peers and how its profitability position has changed
over time.
e. Assess Corrigan's market value ration, and determine how its
valuation compares with peers and how it has changed over time.
Assume the firm's debt is priced at par, so the market value of its
debt equals its book value.

f. Calculate Corrigan's ROE as well as the industry average ROE,
using this DuPont equation. From this analysis, how does
Corrigan's financial position compare with the industry average
numbers?
g. What do you think would happens to its ratios if the company
mil ailed cost-culling measures that allowed it to hold lower levels
of inventory and substantially decreased the cost of goods sold? No
calculations die necessary. Think about which ratios would be
affected by changes in these two accounts.
Corrigan Corporation: Balance Sheets as of December 31

corigan corporation: income statement for years ending December 31

 Per share data

Industry Financial Ratio

*Industry average ratios have been constant for the past 4 years.

*Based on year-end balance sheet figures.

*Calculation is based on a 365 day year.