a Compute the following ratios for both 2015 and 2016 INDUSTRY NORMS Current ratio 1 5 Inventory turnover 3 Total asset turnover 1 Operating profit margin 18 Operating income return on investment 18 Debt ratio 60 Average collection period 100 days Fixed asset turnover 1 5 Return on equity 15

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a. Compute the following ratios for both 2015 and 2016. INDUSTRY NORMS Current ratio 1.5 Inventory turnover 3 Total asset turnover 1 Operating profit margin

a. Compute the following ratios for both 2015 and 2016.

INDUSTRY NORMS

Current ratio

1.5

Inventory turnover

Total asset turnover

Operating profit margin

18%

Operating income return on investment

18%

Debt ratio

60%

Average collection period

100 days

Fixed asset turnover

1.5

Return on equity

15%

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