1. The Walton Corporations 2019 financial statements follow, along with some industry average ratios. Walton Corporation: Balance Sheet as of December 31, 2020 Assets Cash $ 72,000 Accounts receivable 4,39,000 Inventories 894,000 Total current assets $ 1,405,000 Fixed assets 4,31,000 Total assets $1,836,000 Liabilities and Equity Accounts and notes payable $ 432,000 Accruals 170,000 Total current liabilities $ 602,000 Long-term debt 404,290 Common stock 575,000 Retained earnings 254,710 Total liabilities and equity $1,836,000 Walton Corporation: Income Statement for 2020 Sales $4,290,000 Cost of goods sold 3,580,000 Selling, general, and administrative expenses 370,320 Depreciation 159,000 Earnings before taxes (EBT) $ 180,680 Taxes (40%) 72,272 Net income $ 108,408 Per Share Data EPS $ 4.71 Cash dividends per share $ 0.95 P/E ratio 5 Market price (average) $ 23.57 Number of shares outstanding 23,000 Industry Financial Ratios (2020) Quick ratio 1.0 Current ratio 2.7 Inventory turnover 7.0 Total assets turnover 2.6 Return on assets 9.1% Return on equity 18.2% Debt ratio 50.0% Gross Profit margin 20% Net Profit margin 3.5% P/E ratio 6.0

Calculate Waltons 2020 ratios (Quick Ratio, Inventory turnover, ROE, Debt Ratio, Gross Profit Margin): interpret them and compare them with the industry average data, (Just write whether the ratio is better/worse than the industry average)