Carson Electronics' management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found here:

a.Calculate the following ratios for both Carson and BGT:

Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin

Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity

b.Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that Carson's management might focus on to improve its operations.

Score: 0 of 4 pts 9 of 12 (8 complete) HW Score: 47.33%, 23.67 of 50 pts P4-26 (similar to) Question Help (Financial statement analysis) Carson Electronics' management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements Data Table a. Calculate the following ratios for both Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Carson Electronics, Inc. Balance Sheet ($000) BGT Electronics, Inc. Balance Sheet ($000) Cash Accounts receivable Inventories Current assets Net fixed assets Total assets $2,050 4,460 1,540 $8,050 15,950 S24,000 $1,470 6,050 2,450 $9,970 24,950 $34,920 b. Analyze the differences you observe that Carson's management might focus on to improve its operations. a. Calculate the following ratios for both Carson's current ratio is(Round to Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $2,450 1,010 3,510 $6,970 7,950 9,080 S24,000 S5,010 1,510 1,530 S8,050 3,960 22,910 $34,920 Carson Electronics, Inc. BGT Electronics, Inc. Income Statement ($000) Income Statement ($000) Net sales (all credit) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income taxes (35%) Net income 48,040 (35,960) 12,080 (8,030) $4,050 (1,120) $2,930 (1,026) $1,904 $70,020 (42,000) $28,020 (12,040) $15,980 (500) $15,480 (5,418) $10,062 PrintDone Enter your answer in the answer box 23 rain Clear All Check