BUSI 320 Comprehensive Problem 1Summer Use the following information to answer the questions below: note:all sales are credit sales Income Stmt info: 2017 2018 Sales $1,100,000 $1,155,000 less Cost of Goods Sold: 325,000 351,000 Gross Profit 775,000 804,000 Operating Expenses 575,000 609,500 Earnings before Interest& Taxes 200,000 194,500 Interest exp 25,000 30,000 earnings before Taxes 175,000 164,500 Taxes 70,000 65,800 Net Income $105,000 $98,700 Balance Sheet info: 12/31/2017 12/31/2018 Cash 55,000 $52,250 Accounts Receivable 110,000 $111,100 Inventory 80,000 $88,000 Total Current Assets $245,000 $251,350 Fixed Assets (Net) $350,000 $371,000 Total Assets $595,000 $622,350 Current Liabilities $140,000 $161,000 Long Term Liabilities $150,000 $155,000 Total Liabilities $290,000 $316,000 Stockholder's Equity $305,000 $306,350 Total Liab & Equity: $595,000 $622,350 Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio wasgetting "better" or "worse" from 2017 to 2018 and was "good" or "bad" when compared to the Industry Avg in 2018 (round all numbers to 2 digits past the decimal place) 2017 2018 Getting Better or Getting Worse? 2018 Industry Avg "Good" or "Bad" compared to Industry Avg Profit Margin 0.08 Current Ratio 1.90 Quick Ratio 1.12 Return on Assets 0.15 Debt to Assets 0.55 Receivables turnover 18.00 Avg. collection period* 21.20 Inventory Turnover** 8.25 Return on Equity 0.25 Times Interest Earned 8.15 *Assume a 360 day year **Inventory Turnover can be computed 2 different ways.Use the formula listed in the text and by Connect. (the one the text indicates many credit reporting agencies generally use)