Balance Sheet ($000) Carson Electronics, Inc. BGT Electronics, Inc.

Cash $2,010 $1,530

Accounts receivable 4,460 5,970

Inventories 1,520 2,480

Current assets $7,990 $9,980

Net fixed assets 16,050 24,980

Total assets $24,040 $34,960

Accounts payable $2,480 $4,990

Accrued expenses 1,000 1,450

Short-term notes payable 3,450 1,490

Current liabilities $6,930 $7,930

Long-term debt 8,020 4,030

Owners' equity 9,090 23,000

Total liabilities and owners' equity $24,040 $34,960

a.Calculate the following ratios for both Carson andBGT:

Current ratio

Times interest earned

Inventory turnover

Total asset turnover

Operating profit margin

Operating return on assets

Debt ratio

Average collection period

Fixed asset turnover

Return on equity

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 thatCarson's management might focus on to improve its operations.