A manufacturing company's financials reveal the following ratios:Ratio/Calculation20X420X320X220X120X0Industry Ave.Day's Sales In Receivables (days)182531303029Day's Sales In Inventory (days)928978777860Current Ratio2.92.92.42.52.52.2Acid Test (Quick) Ratio1.51.61.81.81.81.9Debt Ratio40%42%46%45%45%52%Times Interest Earned (x's per year)7.17.17.16.96.97.1Fixed Charge Coverage (x's per year)5.45.85.96.96.96.5Gross Profit Margin42%41%42%43%42%40%Operating Profit Margin17%18%18%21%21%20%Net Profit Margin5%5%6%8%8%8%Total Asset Turnover (x's per year)3.43.53.43.43.33.5Financial Leverage Ratio1.71.71.91.81.82.1

Based on the financial information presented in the table above, address the following questions/inquiries.KEEP YOUR ANSWERS SHORT AND SWEET - there is not reason to write a novelette for your answers.

1) Assess the debt-paying ability of this company, being sure to note the TIE and the FCC and speculate on what might be occurring with regard to the FCC beginning in 20X2 (15 points)

2) Comment on the overall liquidity of this company and also address how the movement of the DSR and DSI in 20X2 through 20X4 might be related. (15 points)

3) Focusing on the profit margins presented above, where would you look to improve this company's operationsfrom an expense standpoint if you were senior management of this company? (15 points)