In connection with your analytical tests of 19X8 operations, you are presented with a summary of certain data prepared by a staff accountant as on the following page:

1. Which of the listed ratios should be investigated further by you due to the fact that they are out of line with the preceding year?

2. Which of the listed ratios should be investigated further by you due to the fact that 19X8 is out of line with North Slope's industry?

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19X8 North Slope industry averages 19X8 19X7 1. Net profits on net sales (percent) 2. Net profits on tangible net worth (percent) 3. Net profits on net working capital (percent) 4. Net sales to tangible net worth (percent) 5. Net sales to net working capital (times) 3.63 8.40 3.60 7.62 7.70 5.20 17.64 23.00 21.30 2.10 1.03 0.95 5.23 2.70 2.84 6. Net sales to inventory (times) 8.80 7.84 6.93 7. Collection period (number of days) 53.00 50.00 52.00 8. Current assets to current debt (times) 2.46 2.39 2.60 9. Current debt to inventory (percent) 120.80 120.00 151.00 10. Inventory to net working capital (percent) 52.90 54.00 41.00