Calculate the following ratios for Lake of Egypt Marina Inc. as of year-end 2019. (LG 20-4)

Lake of Egypt Marina Inc. Industry

a. Current ratio 2.0 times

b. Quick ratio 1.2 times

c. Days sales in receivables 32.50 days

d. Days sales in inventory 101.39

e. Sales to working capital 4.25 times

f. Sales to fixed assets 1.15 times g. Total assets turnover 1.18 times h. Debt to assets 62.50%

i. Times interest earned 9.50 times j. Cash flow to debt 62.55%

k. Gross margin 55.55%

l. Profit margin 28.75%

m. ROA 19.75%

n. ROE 36.88%

o. Dividend payout ratio 35%

Using these ratios for Lake of Egypt Marina Inc. and the industry, what can you conclude about Lake of Egypt Marina’s financial performance for 2019? (Ratios l, m, n, and o use net income available to common stockholders.)

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