2. The following financial statements belong to the International Carrier Services company, for the closing of its fiscal year, as of July 31, 2019.

International Carrier Services Income Statement for the Fiscal Year Ended July 31, 2019
Net sales	$51,407
Cost of products sold	25,076
Gross margin	$26,331
Marketing, research, administrative exp.	15,746
Depreciation	758
Operating income (loss)	$ 9,827
Interest expense	477
Earnings (loss) before income taxes	9,350
Income taxes	2,869
Net income (loss)	$ 6,481

International Carrier Services Balance Sheet as of 7/31/2019
Assets			Liabilities and Stockholders Equity
Cash and marketable securities	$ 5,469		Accounts payable	$ 3,617
Investment securities	423		Accrued and other liabilities	7,689
Accounts receivable	4,062		Taxes payable	2,554
Total inventories	4,400		Debt due within one year	8,287
Prepaid expenses & other receivables	2,761		Total current liabilities	$22,147
Other non-current assets	1,925
Total current assets	$19,040		Long-term debt	12,554
			Deferred income taxes	2,261
Property, plant, and equip., at cost	25,304		Other non-current liabilities	2,808
Less: Accumulated depreciation	11,196		Total liabilities	$39,770
Net plant and equipment	14,108
Net goodwill & other intangible assets	23,900		Convertible Class A preferred stock	1,526
Total Fixed Assets	38,008		Common stock	2,141
			Retained earnings	13,611
			Total stockholders equity (deficit)	$17,278
Total Assets	$57,048		Total Liabilities and Stockholders Equity	$57,048

1. Calculate the financial ratios for the International Carrier Services company and compare them to the financial ratios provided for the trucking industry to which the evaluated company belongs.

Ratio	International Carrier Services	Industry Average
Current ratio	.	2.05
Quick ratio	.	0.78
Gross margin	.	23.9%
Profit margin	.	12.3%
Debt ratio	.	0.23
Long-term debt to equity	.	0.98
Time interest-earned ratio	.	5.62
ROA	.	5.3%
ROE	.	18.8%

1. Based on the results of the previous year and your evaluation, propose the adjustments or strategies that you understand the company must carry out in order to be in a better financial position.
2. Would you invest in stocks or bonds of this company? Explain.