calculate the following ratios for business and explain what it means

Tanya will be showing the above financial statements to her banker, as she hopes to borrow funds to expand the business. She knows that the banker will analyze her statements, including calculate ratios. She learns about the following ratios that are average for the jewelry industry: . Current ratio-2 to 1 Debt to asset ratio-60% Accounts receivable turnover ratio 10 times Accounts receivable turnover in days 36.5 days . Gross Margin (aka Gross Profit) 55% Inventory turnover ratio-5 times She would like you to calculate the above ratios for her business in Excel and explain for each ratio what it means and whether her results are positive or negative compared to the industry. Adjusted Trial Balance Dr Cr 173700 360,600 Cash Accounts Receivable 3 33000 Allowance for doubtfil accounts 485,000 11,000 Inventory Office Supplies Prepaid Insurance Prepaid Rent Office Equipment 2,000 1,500 255,000 51,000 Accumulated Amortization -Office Equipment 759,000 Store Equipment 49,800 Accumulated Amortization - Store Equipment 180,300 Accounts Payable 19,200 Salaries Payable 84,800 Unearned Revenue 608,250 Note Payable- long term 712,250 Tanya Xavier, Capital Tanya Xavier, Withdrawals 105,000 3,844,050|Sales revenue 3,750 Sales discounts 2,423,800 Cost of Goods Sold Expense Salaries Expense Advertising Expense Amortization Expense-Oce Equipment Amortization Expense Store Equipment Bad Debts Expense Insurance Expense 531,000 200,700 51,000 49,800 23,400 8,200 21,750 Interest Expense Office Supplies Expense Rent Expense Telephone Expense 9,000 104,050 3,400 5,582,650 Total 5,582,650 Unadjusted Trial Balance Cr Dr 161,250 363,000 Cash Accomts Receivable Allowance for doubtil accounts 12,000 525,000 Office Supplies Prepaid Insurance Prepaid Rent Ofice Equipment Accumulated Amortization-Office Equipment Store Equipment Accunmlated Amortization Store Equipment Accounts Payable Salaries Payable Unearned Revenue 16,800 10,200 11,500 255,000 759,000 7,200 166,800 Note Payable- long tem Tanya Xavier, Capital Tanya Xavier, Withdrawals Sales revenue 600,000 712,250 Sales discounts Cost of Goods Sold Expense Salaries Expense Advertising Expense Amortization Expense-Ofice Equipment Amortization Expense- Store Equipment Bad Debts Expense Insurance Expense Interest Expense Office Supplies Expense Rent Expense Telephone Expense 2,325,000 519,000 200,700 13,500 3,200 94,050 3,400 Balance 5,365,600 5,365,600 Income Statement Revenue from Sales Sales Revenue Sales Discounts Net Sales ,840.300 ost of Goods Sokl 2.423,800 Gross Profit 1416,500 perating Expenses Salaries Expense 531,000 Advertising Expense 700 Amortization Expense: Office Equipment 1,000 Amortization Expense: Store Equipment Bad Debt Expense 23,400 Insurance Expense 200 ffice Supplies Expense Rent Expense 104,050 Telephone Expense 3.400 Total Operating Expenses ncome from Operations 35,950 nterest Expense 1,730 Net Income 14,200 Balance Sheet Assets ash 73,700 ccounts Receivable Allowance for Doubtful Accounts 3,000) 327,600 Inventory 85,000 Mice Supplies ,000 Prepaid Insarance 1,300 Prepaid Rent 1,000,800 Total Current Assets Long Term Assets 5,000 Office Equipment Accumulated Depreciation : Office quipement K$1,000) Store Equipment Accumulated Depreciation: Store Equipment K49,800) 09 200 Total Long Term Assets 13,200 1,914,000 Total Assets Liabilities urrent Liabalitics 180,300 Accounts Payable Salaries Payable neaned Revenue 19,200 4, 800 Total Current Liabilities 284,300 Long Term Liabilities Notes Payable: Long Ternm Total Long Term Liabilinties 608,250 Total Liabilities 550 Owners Equity Taniya Xavier, Capital 1,021.450 1,914,000 Total Liabilities and Owners Equity Industry Topcut Jewel Current Ratio 2 to 1 (Current assets/Current Liabilities) Debt to Asset Ratio 60% (Total Liabilities/Total Assets Accounts Receivable Turnover 10 times (Total revenue (net of contra accounts)/Accounts Receivable) Accounts Receivable Turnover 36.5 days in Days (365/Turnover) Gross Margin 55% Sales-CoGS Expense Gross Margin; Gross Margin/Sales) Inventory Turnover Ratio 5 times (COGS expense/inventory)