Balance Sheet ($000)	Carson Electronics, Inc.	BGT Electronics, Inc.
Cash	$2,020	$1,520
Accounts receivable	4450	5970
Inventories	1530	2540
Current assets	$8,000	$10,030
Net fixed assets	15980	24950
Total assets	$23,980	$34,980
Accounts payable	$2,460	$5,010
Accrued expenses	1050	1500
Short-term notes payable	3520	1500
Current liabilities	$7,030	$8,010
Long-term debt	8030	3950
Owners' equity	8920	23020
Total liabilities and owners' equity	$23,980	$34,980
Income Statement ($000)	Carson Electronics, Inc.	BGT Electronics, Inc.
Net sales (all credit)	$48,010	$69,990
Cost of goods sold	(36,020)	(41,990)
Gross profit	$11,990	$28,000
Operating expenses	(8,010)	(12,000)
Net operating income	$3,980	$16,000
Interest expense	(1,150)	(530)
Earnings before taxes	$2,830	$15,470
Income taxes (35%)	(991)	(5,415)
Net income	$1,839	$10,055

(Financial statement analysis) Carson Electronics' management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found here: a. Calculate the following ratios for both Carson and BGT: Current ratio Operating return on assets Times interest earned Debt ratio Inventory turnover Average collection period Total asset turnover Fixed asset turnover Operating profit margin 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 that Carson's management might focus on to improve its operations. a. Calculate the following ratios for both Carson and BGT: Carson's current ratio is . (Round to two decimal places.)