BUSI 320 Comprehensive Problem 1 Version FALL 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 $ 2017 900,000 325,000 575,000 450,000 125,000 25,000 100,000 40,000 60,000 2018 990,000 346,125 643,875 477,000 166,875 31,000 135,875 54,350 81,525 $ Balance Sheet info: 12/31/2018 63,600 89,600 Cash Accounts Receivable Inventory Total Current Assets Fixed Assets (Net) 12/31/2017 60,000 80,000 110,000 250,000 300,000 550.000 118,800 272,000 330,000 Total Assets 602.000 Current Liabilities Long Term Liabilities Total Liabilities 130,000 150,000 280,000 156,000 | 170,000 326,000 276,000 602.000 270,000 Stockholder's Equity Total Liab & Equity: 550.000 Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and whether the 2018 ratio was "good" or "bad" compared to the Industry Avg (round all numbers to 2 digits past the decimal place) Getting Better or Getting Worse? "Good" or "Bad" compared to Industry Avg 2017 2018 Profit Margin Current Ratio Quick Ratio Return on Assets Debt to Assets Receivables turnover Avg. collection period* Inventory Turnover** Return on Equity Times Interest Earned 2018 Industry Avg 0.09 1.80 1.12 0.18 0.60 12.00 22.10 8.25 0.16 8.15 *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)