Balance Sheet as of December 31, 2019 $ Cash Accts receivable Inventories Total current assets 218,000 250,500 209,000 677,500 s 44,000 354,000 76.000 474,000 290,000 517.500 1.281.500 Net fixed assets Total assets $ 604.000 1.281,500 Statement of Earnings for 2019 Accounts payable Notes payable Accruals Total current liabilities $ Long-term debt Common equity Total liab. & equity $ Industry Average Ratios Current ratio Quick ratio Days sales outstanding Inventory turnover Total asset turnover Net profit margin Return on assets Return on equity Debt-to-capital ratio s $ Net sales Cost of sales Gross profit Operating expenses EBIT Interest expense Pre-tax earnings Income taxes (2596) Net profit $ 1,358,500 1.059.500 299,000 159.500 139,500 67.500 72,000 18.000 54.000 1.2 0.7 61 days 9.1 0.8 2.046 1.79 3.7% 4296 $ $ $ $ Net sales Cost of sales Gross profit Operating expenses EBIT Interest expense Pre-tax earnings Income taxes (25%) Net profit $ 1,358,500 1.059,500 299,000 159.500 139,500 67.500 72,000 18,000 54,000 Current ratio Quick ratio Days sales outstanding Inventory turnover Total asset turnover Net profit margin Return on assets Return on equity Debt-to-capital ratio $ $ 3 Compared to other firms in the same industry, Terry.. a has a lower return on assets. b. is in a relatively weak short-term liquidity position. oc has a lower profit margin. o d. uses more financial leverage. O e.collects its accounts receivable faster