CarsonElectronics' 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 foundhere

a. Calculate the following ratios for both Carson andBGT:

Current ratio Operating return on assets

Times interest earned Debt ratio

Inventory turnover Average collection period

Total asset turnover Fixed asset turnover

Operating profit margin 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 thatCarson's management might focus on to improve its operations.

a. Calculate the following ratios for both Carson andBGT:

Carson'scurrent ratio is ___.(Roundto two decimalplaces.)

'i Cash $2,040 $1 ,530 Accounts receivable 4,490 6,000 Inventories 1,520 2,540 Current assets $8,050 $10,070 Net xed assets 15,980 24,960 Total assets $24,030 $35,030 Accounts payable $2,500 $5,020 Accrued expenses 1,030 1,490 Shortterm notes payable 3,550 1,520 Current liabilities $7,080 $8,030 Longterm debt 7,990 3,960 Owners' equity 8,960 23,040 Total liabilities and owners' equity $24,030 $35,030 it Net sales (all credit) $48,050 $70,050 Cost of goods sold (36,010) (41 ,950) Gross prot $12,040 $28,100 Operating expenses (7,990) (12,030) Net operating income $4,050 $16,070 Interest expense (1 ,130) (530) Earnings before taxes $2,920 $15,540 Income taxes (35%) (1,022) (5,439) Net income $1,898 $10,101