7-12) Data for Argils Textiles2014 financial statements are given in Tables 7.1 and 7.2 in the chapter.

a) Compute the 2014 values of the following ratios:

2014 Values

Ratio Argils Industry

Current ratio 3.9x

Days sales outstanding 33.5 days

Inventory turnover 7.2x

Fixed assets turnover 4.1x

Debt ratio 43.0%

Net profit margin 4.6%

Return on assets 9.9%

b) Briefly comment on Argiles 2014 financial position. Can you see any obvious strengths or weaknesses?

c)Compare Argiles 2014 ratios with its 2015 ratios, which are presented in Table 7-6. Comment on whether you believe Argiles fincial position improved or deriorated ruring 2015.

d) What other information would be useful for projecting whether Argiles financial position is expected to improve or deteriorate in the future?