BUSI 320 Comprehensive Problem 1 Version B Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: Sales $ less Cost of Goods Sold: Gross Profit Operating Expenses Earnings before Interest & Taxes Interest exp earnings before Taxes Taxes Net Income $ 2019 1,100,000 $ 450,000 650,000 330,000 320,000 25,000 295,000 118,000 177,000 $ 2020 1,188,000 481,500 706,500 346,500 360,000 30,000 330,000 132,000 198,000 1 2 3 4 5 6 7 8 19 20 21 22 23 24 25 26 27 28 Balance Sheet info: Cash Accounts Receivable Inventory Total Current Assets Fixed Assets (Net) Total Assets 12/31/2019 60,000 $ 80,000 $ 110,000 $ 250,000 $ 300,000 $ 550,000 $ 12/31/2020 72,000 81,600 135,000 288,600 315,000 603,600 $ $ $ Current Liabilities Long Term Liabilities Total Liabilities Stockholder's Equity Total Liab & Equity: V T V V | $ $ $ $ $ 130,000 $ 150,000 $ 280,000 $ 270,000 $ 550,000 $ 139,100 183,000 322,100 281,500 603,600 Compute each of the following ratios for 2019 and 2020 and indicate whether each ratio was getting "better" or "worse" from 2019 to 2020 and was "good" or "bad" compared to the Industry Avg in 2020 (round all numbers to 2 digits past the decimal place) "Good" or "Bad" Getting compared Better or 2020 to Getting Industry Industry 2019 2020 Worse? Ave Avg Profit Margin 0.11 Current Ratio 1.90 Quick Ratio 11.12 Return on Assets .28 Debt to Assets 0.55 Receivables turnover 18.00 Avg. collection period* 21.20 Inventory Turnover** 8.25 Return on Equity 0.55 Times Interest Earned 11.15 *Assume a 360 day year **Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use)