can you ancer questions 3 and 4 i am alittle lost on how to do them. thank you for everything. also if you ancer 1 and 2 ill give you a thumbs up no matter what.

CHAPTER 3 Working with Financial Statements 95 CHAPTER CASE Ratios and Financial Planning at S&S Air, Inc. partial payment before the order is complete in con trast, commercial airplane may take one and one-half to two years to manufacture once the order is placed Mark and Todd have provided the following finan cial statements Chris has gathered the industry ratios for the light airplane manufacturing Industry Shris assist the company with its financial planning and to evaluate the company's performance Chris graduated from college five years ago with a finance degree. He has been employed in the finance department of a For tune 500 company since then 585 Al was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the com pany's products have received high reviews for safety and reliability. The company has a niche market in that it se primarily to individuals who own and fly their own airplanes. The company has two models the Birdie which solls for $53,000, and the Engle, which sells for 578,000 While the company manufactures aircraft, its opere tions are different from commercial craft companies S&S Air builds acron to order By using prefabricated parts, the company is able to complete the manufacture of an airplane in only five weeks. The company also celves a deposit on each order as well as another S&S AIR, INC 2019 Income Statement Sales $26,501,600 Cost of goods sold 19.780 200 Omer expenses 3,166.700 Depreciation 864 500 EBIT $ 2.690.200 Interest 479,200 Tax Income 52.211.000 TI 154.310 Net income $1,740,690 Dividends $270,600 Addition to retained 1.476,090 mings SAS AIR INC 3019 Balance Sheet Assets Labied Equity Current Cash $ 481.852 Accounts receivable 2.025778 Inventory 1,634.820 Total current 54.142,450 Fassets Net plant and 516,256698 equipment Accounts payable S 944,00 Notes payable 1.000 248 Total current 51 2853.946 $ 5.000.000 Long-temebi Show equity Commons Retained eating Toalety Total and $ 100.000 12.295. 202 $42.485 202 520,99,140 Total 520,309,145 96 PART 2 Understanding Financial Statements and Cash Flow Upper Quartie Current Quick to Cash ratio Totale turnover Inventory turnover Receivables tumover Total debt ratio Deblequity ratio Equity multiple Times interest earned Cash coverage ratio Profit Return on assets Return on equity Light Airplane Industry Ratios Lower Our Median 50 142 54 08 21 50 55 489 6.15 6.27 9.82 31 52 50 LOD 2.00 5.15 06 5.34 4.OS 6.753 6.05% 10.SIN 9.93 16.54% 1.89 1.05 39 1.13 10.89 1151 51 1.56 256 9.83 10.27 8.47% 13:21 26.15 QUESTIONS 1. Calculate the ratios for S&S Air that are shown for the industry 2. Mark and Todd agree that a ratio analysis can pro vide a measure of the company's performance They have chosen Boeing as an aspirant com pany. Would you choose Boeing as an aspirant company? Why or why not? 3. Compare the performance of S&S Ar to the indus try. For each ratio, comment on why it might be viewed as positive or negative relative to the in dustry. Suppose you create an inventory ratiocal- Culated by inventory divided by current abilities. How do you think 585 Al's ratio would compare to the industry average? 4. Calculate the internal growth rate and sustainable growth rate for 585 Alt What do these numbers mean