1. The following information is available for Radovich Researchers:

	2020	2019
Pro t margin	8.7%	8.3%
Return on assets	10.2%	10.4%
Price to earnings ratio	13.5	12.0
Quick ratio	0.8	0.9
Inventory turnover ratio	5.5	7.2
Receivable turnover ratio	11.3	15.5
Times interest earned	7.2	6.4

REQUIRED

For each ratio, indicate whether the change in the ratio is favourable, unfavourable or indeterminate and why.

2. The following nancial information about Howard Enterprises is available:

Sales	$1 200 000
Net pro t	260 000
Average total assets	1 800 000
Average shareholders equity	880 000

2.The following additional information is available:

1. i The contributed capital was made up of 250 000 ordinary

   shares. No shares were issued during the year.

2. ii The shares were recently trading for $10.00 (per share).

   REQUIRED

   Calculate the following ratios:

3. a profit margin

4. b return on equity

5. c return on assets

6. d earnings per share

7. e price earnings ratio.

8. The following information was taken from the nancial statements of TK Company:

   	2021	2020
   Total assets	$400 000	$250 000
   Total liabilities	150 000	150 000
   Total equity	250 000	100 000
   Earnings before interest and tax	70 000	60 000
   Interest expense	14 000	15 000

   REQUIRED

   Calculate:

9. a the debt to assets ratio

10. b the debt to equity ratio

11. c times interest earned for both years.