2. Data for Cary Company and its industry average follow.

Balance Sheet as of Dec. 31

Assets Liabilities and Owner's Equity 2016

2016 Current Assets

Current Liabilities Cash 75,500

Accts payable 127,000

A/R 330,000

Notes payable 84,000

Inventories 251,500

Other current liabilities 115,000

Total CA 657,000

Total CL 326,000

Net fixed assets Long-term debt 266,500

Net plant and equipment 282,500

Total Liabilities 592,500

Common Equity 347,000

Total Assets 939,500

Total Liabilities and Equity 939,500

Sales 1,600,500

COGS (1,353,000)

Gross profit 247,500

Fixed operating expenses except depreciation (140,000)

Earnings before interest, taxes, depre and amort (EBITDA) 107,500

Depreciation (40,000)

EBIT (Opering income) 67,500

Interest expense (24,000)

EBT (Taxable income) 43,500

Taxes (40%) (17,400)

Net income 26,100

a. Calculate the indicated ratios for Cary.

Ratio Cary Industry Average Current ratio _____________ 2.0 X

Days sales outstanding _____________ 35 days

Inventory turnover _____________ 5.6 X

Total assets turnover _____________ 3.0 X

Net profit margin _____________ 1.2%

Return on assets (ROA) _____________ 3.60%

Return on equity (ROE) _____________ 9.00%

Debt ratio _____________ 60%