Below are the financial statements of Morning Glory Enterprise for the financial year 2019. Cash Accounts receivable Inventory Marketable securities MORNING GLORY ENTERPRISE BALANCE SHEET AS AT 31 DECEMBER 2019 (RM) Plant and equipment Land and buildings Less: Accumulated depreciation TOTAL ASSETS Sales Less: Cost of goods sold Gross Profit Less: Operating expenses Earnings before interest and taxes Less: Interest expenses Earnings before taxes Less: Taxes (40%) Net Income 1. Current ratio Quick ratio Debt ratio Times Interest Earned Average collection period ii. 140,000 66,500 520,000 380,000 1,860,000 820,500 625.000 3,162,000 MORNING GLORY ENTERPRISE INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 6,500,000 3,200,000 3,300,000 1,050,000 2,250,000 500,000 1,750,000 Accounts payable Notes payable Accruals 700,000 1,050,000 Long term debt Debentures Common stock Retained earnings TOTAL CLAIMS Industry Average 2.56 X 1.35 X 60 % 7X 38 days 124,000 70,000 108,000 560,000 640,000 910,000 750,000 3,162,000 Fixed asset turnover Inventory turnover Net profit margin Return on asset Return on equity 6.3 X 3 X 10.80 % 21.56% 53% Given the above industry averages, calculate the indicated ratios for the year 2019. Based on your answer in (1). evaluate the overall performance of the company according to liquidity, activity, profitability and leverage ratios.