08 1. Calculate the financial ratios of D&G Co. for 2019 and interpret the financial position of the firm. D&G Co. Key Ratios Industry 2018 2019 Average Current Ratio 1.3 1.0 Quick Ratio 0.75 Average collection Period 23 days Inventory Turnover 21.7 19 Debt Ratio 64.7 50P Times Interest Earned 48 5,5 Gross Profit Margin 13.6 12.0" Net Profit Margin 1.00 0.5 Return on total assets 2.9% 20% Return on Equity 8.2 4.0" 30 days Income Statement D&G Co. For the Year Ended December 31, 2019 Sales Revenue $100,000 Less: Cost of Goods Sold 87000 Gross Profits $13,000 Less: Operating Expenses 11 000 Operating Profits Less: Interest Expense 500 Net Profits Before Taxes $1.500 Less: Taxes (40%) 600 Net Profits After Taxes $900 $2,000 Balance Sheet D&G Co. December 31, 2019 Assets Cash Accounts Receivable Inventories Total Current Assets Gross Fixed Assets $35,000 Less: Accumulated Depreciation 13.250 Net Fixed Assets Total Assets $ 1.000 8.900 4,350 $14,250 21.750 $36,000 Liabilities & Stockholders Equity Accounts Payable Accruals Total Current Liabilities Long-term Dibt Total Liabilities Comman Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity $ 9,000 6.675 $15.675 4125 $19.00 1.000 15,200 S16,200 $3,000