2018 2019 Assets $ X Corporation 188 Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets 84 165 393 642 422 2019 Income Statement 709 $2.880 Sales $2,731 $3,373 $2,311 1,344 $3,588 276 $ 691 Liabilities and Owners' Equity Current liabilities Accounts payable $312 Notes payable 231 Total 543 Long-term debt $ 531 Owners' equity Common stock and paid-in surplus $ 500 Retained earnings 1.799 Total $2,299 Total liabilities and owners' equity $3,373 $ 344 196 540 457 Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (34%) Net income 141 $ 550 187 $ 363 $ 550 2,041 $2,591 $3.588 (a) Calculate and interpret the average collection period for 2019. If the industry benchmark for average collection period is so, what will be your opinion regarding X corporation? (b) Calculate and interpret the Return on Asset for 2019. If the industry benchmark for Return on Asset is 20% and the deposit rate in a bank is 11%, what will be your opinion regarding X corporation? () Calculate and interpret the debt ratio for 2018. If the industy benchmark for debt ratio is 60%, what will be your opinion regarding X Corporation? (d) Discuss the potential problems of using ratio analysis? Activa