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:

Balance Sheet ($000)	Carson Electronics, Inc.	BGT Electronics, Inc.
Cash	$1,990	$1,450
Accounts receivable	4510	5970
Inventories	1540	2460
Current assets	$8,040	$9,880
Net fixed assets	15990	25050
Total assets	$24,030	$34,930
Accounts payable	$2,540	$5,000
Accrued expenses	950	1500
Short-term notes payable	3520	1490
Current liabilities	$7,010	$7,990
Long-term debt	8020	4010
Owners' equity	9000	22930
Total liabilities and owners' equity	$24,030	$34,930

Income Statement ($000)	Carson Electronics, Inc.	BGT Electronics, Inc.
Net sales (all credit)	$48,000	$70,000
Cost of goods sold	(35,970)	(41,970)
Gross profit	$12,030	$28,030
Operating expenses	(7,970)	(12,050)
Net operating income	$4,060	$15,980
Interest expense	(1,140)	(530)
Earnings before taxes	$2,920	$15,450
Income taxes (35%)	(1,022)	(5,408)
Net income	$1,898	$10,042

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.