Bondy’s Place has selected financial ratios for 20X1-20X3 as follows:

20X1 20X2 20X3 Current ratio Ves 1.15 12 Accounts receivable turnover 13 12 11 Inventory turnover 24 Os) 22 Asset turnover uF) 1.4 (igtes Debt-equity ratio 12 1.4 3 Sales for the three years were as follows:

$1,000,000 $1,200,000 $1,400,000 Required:

1. Assume total assets did not change during 20X3. Determine the total debt at the end of 20X3.

2. If cost of sales were 10% of total sales, what was the average inventory for 20X3?

3. Comment on liquidity of Bondy’s Place over the three-year period.