Current Asset Turnovers. Tech Products Company is a wholesaler and has very few noncurrent assets. It has been growing rapidly. Operating net income increased from \(\$ 130,000\) in 1997 to \(\$ 288,000\) in 1998. Cost of goods sold and operating expenses amounted to \(\$ 1,300,000\) in 1997 and \(\$ 4,800,000\) in 1998 . The average investment in current assets was \(\$ 650,000\) in 1997 and \(\$ 1,600,000\) in 1998 . The company had some difficulties in meeting delivery schedules in 1998 and in making payments to creditors. Ignore taxes.

\section*{Required:}

1. Compute the return on current assets each year.

2. Compute the current asset turnover each year, using sales as the numerator.

3. Explain why the company may be having trouble in meeting delivery schedules and in making payments to creditors.