Assets Cash Acct. Receivable Inventory Current Assets Net Fixed Assets Dawson Creek Transit Balance Sheet Liabilities $ 15,000 Accounts Payable 22,000 Notes Payable 30,000 Accrued Expenses 67,000 Current Liabilities 72.000 Long-term Debt Shareholders' Equity 5140,000 Shareholders' Equity $ 21,000 20,000 5.000 46,000 30,000 64.000 Total Liabilities & Total Assets $140,000 Sales (80% credit) Less: Cost of Goods Sold Gross Profit Selling and Administrative Expense Rent Expense (Lease) EBIT Interest Expense Earnings before taxes Taxes (2595) Net Income Income Statement $120,000 45.000 75,000 20,000 8.000 28.000 47,000 3.000 42,000 10.500 $ 31,500 Common shares outstanding EPS 13,000 $ 2.10 Ratios for Dawson Creek Ratio Profit margin Industry Average 17:59 359 Return on equity Receivabler rumover Avg. collection period Inventory tumover Fixed asset tumover Total asset turnover Current ratio Quick ratio 83.0 days 3.3% 2.4x 76% 1.28 .85 Times interested 12 O Current ratio 1.28 Puick ratio .85 Cimes interest earned 12.0x 1. Given the balance sheet and income statement for Dawson Creek Transit, compute the ratios above. (10 Marks) 2. List the Ratios for Dawson Creek Transit and compare with the industry average. What do each of these ratios tell us about Dawson Creek Transit. Indicate whether a particular ratio for Dawson Creek Transit is better or worse than the industry average