USING COMPARATIVE DATA FOR CREDIT ANALYSIS. You are the credit manager for Materials Supply Company. One of your sales staff has made a $50,000 credit sale to Stewart Electronics, a manufacturer of small computers. Your responsibility is to decide whether to approve the sale. You have the following data for the computer industry and Stewart Electronics:

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FOR THE YEARS 1991-1995 STEWART INDUSTRY ELECTRONICS Average annual sales growth 13.4% 17.6% Average annual operating income growth 10.8% 9.7% Average annual net income growth 14.4% 9.9% Average annual asset growth 10.3% 14.2% Average debt to equity ratio 32 26 Average current ratio 4.04 3.71 Average inventory turnover ratio 2.53 2.06 Average accounts receivable turnover ratio 3.95 4.18