2. Trusty Treats Enterprise have been involved in the candy business for 2 years. The financial ratios of the company for two years (2019 and 2020) and the industry averages for the year 2020 are presented in TABLE Q2. TABLE Q2: Financial ratios 2019 2020 Ratio Industry average (2020) 76% 53% 60% 62% 52% 53% 10% 9% Gross profit margin Net profit margin Return on assets Inventory turnover Average collection period Current ratio Quick ratio 7 times 60 days 9 times 55 days 5.5:1 2.9:1 13% 16 times 45 days 7.9:1 5.4:1 6.2:1 3.2:1 After a long discussion with the management, you have also identified the following information regarding candy businesses: 1. Suppliers sometimes offer discounted materials without any prior notice for a very short time to push the sale of old stocks. Therefore, candy businesses must be quick to take advantage when the opportunity arises. ii. Most of the candies have a very long shelf life and may be stored for an average of 2 years. This sometimes allows the business to buy in bulk to get more discounts. ii. Credit customers are the ones who would likely to buy in large quantities. iv. The current state of the industry is highly competitive. The market leaders create competitive advantages by providing unique and trending services to the customers The use of social media influencers and local celebrities as product ambassadors are good strategies to attract customers. V. Based on the financial ratios and the information obtained, assess the current performance of the business