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The financial team has been properly selected and charged to proceed with their analysis of EEV’s financial statements. In the course of their evaluation, they will be assessing the firm’s operating performance, benchmarking their competitors, and looking at the industry using financial ratios as their source of measurement. However, the chief executive officer (CEO) of Electronic Equipment USA agrees with numerous practitioners who promote the use of nonfinancial measures as well as financial measurements to evaluate the performance of a given firm. Nevertheless, Tony agrees that nonfinancial measurements can be valuable, and he tends to support the premise that when evaluating operating performance, benchmarking competitors, and comparing industry results, nonfinancial measurements have little measurable value.The CEO of the parent company agrees with numerous practitioners who promote the use of nonfinancial measures as well as financial measurements to evaluate the performance of a given firm. Nevertheless, Tony agrees that nonfinancial measurements can be valuable, and he tends to support the premise that when evaluating operating performance, benchmarking competitors, and comparing industry results, nonfinancial measurements have little measurable value.Tony has asked you to present a position paper comparing the effectiveness and reliability of using financial measures as opposed to nonfinancial measures. Include the following:Provide an analysis of the utilization of assets in terms of efficiency (or inefficiency). What are measurements associated with returns and activity ratios? Explain why you selected each specific measurement. Then, review the electronic equipment industry using financial ratios. Assess the firm’s operating performance against these ratios. Research the financial reports of 1 company in the electronic equipment industry, and compare it with the performance of Electronic Equipment Venture. Include an Excel spreadsheet to support your analysis. Use this information to support your position, and compare the effectiveness and reliability of using financial measures as opposed to nonfinancial measures. Click here to view the EEV balance sheet.Click here to view the EEV income statement.balance sheetElectronic Equipment Venture Balance Sheet (In Thousands) 200820092010 FcstAssets Cash 300130100Accounts Receivables 540067008800Inventory 6700900012000Total Current Assets 124001583020900 Net Plant & Equipment 150015301700Total Assets 139001736022600 Liabilities Accounts Payables 300031004800Notes Payables 4506001200Accured Taxes 300350900Current portion of long-term Debt 200200200Total Current Liabilities 395042507100 Long-term Debt 180017001600Shareholders equity 81501141013900Total Liabilities and Net Worth 139001736022600Income statementElectronic Equipment VentureIncome Statement Thousands200820092010 (Fsct)Net Sales98800108000113500Cost of good soldTotal cost of good sold685008025085425Gross Profit303002775028075%31%26%25% ExpensesGeneral & Administrative350053005700Marketing750085009000 Operating Expense99001061011120Total Expenses209002441025820 Income Before Taxes940033402255Taxes37601336902Net Income564020041353 Headcount Direct 208024002500 Indirect320350400Total Headcount240027502900 Products200820092010 FcstSalesMargin%SalesMargin%SalesMargin%Electronic Equipment Television4000100025%350090026%5000104521% Computers5000240048% 5200230044%7600330043% Medical2300150065%3500200057%4000180045% Automotive15000320021%16000280018%15400300019%Electronic Equipment Total26300810031%28200800028%32000914529% Electronic Equipment Parts Television12000320027%13000305023%12000223019% Computers445001300029%500001050021%480001050022% Medical6000350058%7000370053%7500370049% Automotive10000250025%9800250026%14000250018%Electronic Equipment Parts Total725002220031%798001975025%815001893023% Total988003030031%1080002775026%1135002807525%Electronic Equipment VentureIncome Statement Thousands200820092010 (Fsct)Net Sales98800108000113500Cost of good soldTotal cost of good sold685008025085425Gross Profit303002775028075%31%26%25% ExpensesGeneral & Administrative350053005700Marketing750085009000 Operating Expense99001061011120Total Expenses209002441025820 Income Before Taxes940033402255Taxes37601336902Net Income564020041353 Headcount Direct 208024002500 Indirect320350400Total Headcount240027502900 Products200820092010 FcstSalesMargin%SalesMargin%SalesMargin%Electronic Equipment Television4000100025%350090026%5000104521% Computers5000240048% 5200230044%7600330043% Medical2300150065%3500200057%4000180045% Automotive15000320021%16000280018%15400300019%Electronic Equipment Total26300810031%28200800028%32000914529% Electronic Equipment Parts Television12000320027%13000305023%12000223019% Computers445001300029%500001050021%480001050022% Medical6000350058%7000370053%7500370049% Automotive10000250025%9800250026%14000250018%Electronic Equipment Parts Total725002220031%798001975025%815001893023% Total988003030031%1080002775026%1135002807525%1,200–1,500 words + Excel spreadsheet