BUSI 320 Comprehensive Problem 1 Version FALL Use me following information to answer me questions below noto: all sales am crodit sales Income Stmt into: 2017 2018 Sales s00.000 90,000 less Cost of Goods Sold: 325 000 346.125 575,000 Gross Prot 643875 Operating Expenses 450,000 477,000 Eamings before Interest & Taxes Interest exp 125,000 166.875 25.000 31.0008 eamings betore Taxes 100.000 135,875 40.000 0. 0 Taxes 54.350 Net Income S 81,525 Balance Sheet into: 13/31/17 60.000 S 80,000 110.000 12/31/18 Cash 63,600 Accounts Receivable Inventory 89,600 118,800 250,000S s Total Cument Assets 272.000 Fxed Assets (Net) 300.000 330.000 550,000 s Total Assets E02,000 130.000 S 150,000 's Cument Labilities S 156.000 Long Term Labilities 170,000 326.000 280,000 S Total Liabilities s 270,000 Stockholders Equity 276,000 Total Liab & Equity: 550.000 602,000 Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "beter or "worse trom 2017 0 2018 and whether the 2018 ratio was good" or "bad" compared to the Industry Avg fround all numbers to 2 digits past the decimal place) Good" or "Bad Getting Better or 2018 compared Getting Worse? Industry to Industry 2017 2018 Avg Avg Proit Margin 0.09 Cument Ratio 1.80 Quick Ratio 1.12 Retum on Assets 0.18 Debt to Assets 0.60 Receivables tumover 12.00 Avg. collection period 22.10 Inventory Tumover 8.25 Retum on Equity 0.16 Times interest Eamed a.15 Assume a 360 day year Use the fomula listed in the text inventory Tumover can be computed 2 dittenent ways. the one the text indicates many credit reporting agencies generally use)