9. (Financial statement analysis) Carson Electronics' management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found here: 4 a. Calculate the following ratios for both Carson and BGT: Current ratio Operating return on assets Times interest earned Debt ratio Inventory turnover Average collection period Total asset turnover Fixed asset turnover Operating profit margin Return on equity b. Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the Carson's current ratio is BGT's current ratio is performance of Carson as compared to BGT that Carson's management might focus on to improve its operations. a. Calculate the following ratios for both Carson and BGT: (Round to two decimal places.) (Round to two decimal places.) Carson's times interest earned is times. (Round to two decimal places.) BGT's times interest earned is times. (Round to two decimal places.) Carson's inventory turnover is times. (Round to two decimal places.) BGT's inventory turnover is times. (Round to two decimal places.) Carson's total asset turnover is (Round to two decimal places.) BGT's total asset turnover is (Round to two decimal places.) Carson's operating profit margin is %. (Round to one decimal place.) BGT's operating profit margin is %. (Round to one decimal place.) Carson's operating return on assets is %. (Round to one decimal place.) BGT's operating return on assets is %. (Round to one decimal place.) Carson's debt ratio is %. (Round to one decimal place.) BGT's debt ratio is %. (Round to one decimal place.) Carson's average collection period is days. (Round to one decimal place.) BGT's average collection period is days. (Round to one decimal place.) Carson's fixed asset turnover is - (Round to two decimal places.) BGT's fixed asset turnover is (Round to two decimal places.) Carson's return on equity is %. (Round to one decimal place.) BGT's return on equity is %. (Round to one decimal place.) b. Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that Carson's management might focus on to improve its operations. (Select the best choices below.) Carson's Performance vs. BGT B. Similar Category of Financial Ratios 1. Liquidity Ratios Current Ratio Average Collection Period O A. Better B. Similar O A. Better OB. Similar Inventory Turnover O A. Better Carson's Performance vs. BGT (Select the best choices below.) Category of Financial Ratios 2. Capital Structure Ratios Debt Ratio Times Interest Earned O A. Better OB. Similar O A. Better OB. Similar Carson's Performance vs. BGT (Select the best choices below.) Category of Financial Ratios 3. Asset Management Efficiency Ratios Total Assets Turnover Fixed Assets Tumover O A. Better OB. Similar O A. Better OB. Similar (Select the best choices below.) Carson's Performance vs. BGT Category of Financial Ratios 4. Profitability Ratios Operating Profit Margin Operating Return on Assets O A. Better OB. Similar O A. Better B. Similar Return on Equity O A. Better OB. Similar 4: Data Table Cash Accounts receivable Inventories Current assets Net fixed assets Total assets Carson Electronics, Inc. Balance Sheet ($000) $1,950 4,470 1,530 $7,950 16,010 $23,960 BGT Electronics, Inc. Balance Sheet ($000) $1,550 6,040 2,500 $10,090 24,970 $35,060 Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $2,550 1,040 3,470 $7,060 8,050 8,850 $23,960 $4,980 1,480 1,530 $7,990 3,970 23,100 $35,060 Net sales (all credit) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income taxes (40%) Net income Carson Electronics, Inc. Income Statement ($000) $47,950 (35,990) $11,960 (8,020) $3,940 (1,180) $2,760 (1.104) $1,656 BGT Electronics, Inc. Income Statement ($000) $70,020 (42,050) $27,970 (12,040) $15,930 (530) $15,400 (6,160) $9,240