a con are for your convenience when Knicherdoodles. Inc 20X1 20x2 Industry average ratios (360 day year 20X1 20X2 Sales (all credit) $740 5785 Current ratio 4.1 ? COGS 450 400 7 ? Operating Exp (Excluding Depreciation) 150 160 Quick ratio A/R collection period 47 Inventory turnover 2.1 7 7 Interest 35 7 16 17 Total asset turnover 0.35 Dividends Depreciation Expense Cash 100 110 2 Fixed asset turnover 045 2 Gross margin 41.20N 70 75 563 SO2 Accounts receivables Accounts payable 7 Operating margin 11.10 Times interest earned 4. 7 390 us 60 Inventory Long term delit Net foed assets 500 410 1.60 1,413 Total Assets 2.40 2.95 Common stock 700 255 Tax rate 58 55% The CEO of Knickerdoodlos makes the following statements The firm faced new competition from low-cost, start-up firms during 2012 The firm's operating performance is significantly better than the industry The firm's abiny to service outstanding det han eroded during 2012 Net margin has improved The CEO of Knickerdoodles makes the following statements: The firm faced new competition from low-cost, start-up firms during 2012 The firm's operating performance is significantly better than the industry . The firm's ability to service outstanding debt has eroded during 2012 Net margin has improved Given the data, how many of the CEO's statement appear to be correct? (assume that the data provided includes all income statement information) BB DE 3