2. Using the following information, answer the questions listed below: Dana Dairy Products Key Ratios Industry Actual Actual Average 2012 2013 Current ratio 1.3 1.0 Quick ratio 0.8 0.75 Average collection period 23 days 30 days Inventory turnover 21.7 19 Debt ratio 64.7% 50% Times interest earned 4.8 5.5 Gross profit margin 13.6% 12.0% Net profit margin 1.0% 0.5% Return on total assets 2.9% 2.0% Return on equity 8.2% 4.0% Income Statement, Dana Dairy Products, For the Year Ended December 31, 2020 Sales revenue $100,000 Less: Cost of goods sold 87,000 Gross profits $ 13,000 Less: Operating expenses 11,000 Operating profits $ 2,000 Less: Interest expense 500 Net profits before taxes 1,500 Less: Taxes (40%) Net profits after taxes Balance Sheet Dana Dairy Products December 31, 2020 $ 600 900 $ Assets Cash Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets $1,000 890 4,320 $14,250 $35.000 13250 21.250 $ 9,000 6,675 $15,675 4 125 Liabilities & Stockholders' Equity Accounts payable Accruals Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities & stockholdersequity $19,800 1.000 15,200 $16,200 $36,000 i a Calculate the following ratios for 2020: Current ratio. b. Net working capital c. Inventory turnover d Average collection period Gross profit margin f. Net profit margin g. Return on assets h. Return on equity ii. Based on the calculations in part above, comment on the performance of the company as compared to its industry and its own last year results. (20 Marks) e