Chapter 3 Wonkini with fersncad 5 tatements 95 Bintic, which sells for $103,000, and the Eagle, which rells for $178,000. Alshough the company manufactures aircraft, it ojera- tions are different from comimercial aircraft companics, SRS Air builds aircraft to otder. By using prefabricated parts. the company can complete the manufacture of an airplanc in ooly five weeks: The conpany aloo receives a deprossi non each order. as well as another partial paymeat befoee the order is complete. In contray, a commercial airplane may take one and one-half to two years to manufacture ouce the order is placed. Maxk and Todd have provided the following financial statemeets. Chris has gathered the industry matios for the light. airplane manufacturing industry. QUESTIONS 1. Using the financial statements provided for \( \$ \& 5 \)amp;5 Air, cakalale each of the ratios lived in the table for the light aircraft indosiry. 2. Mark and Todd agree that a ratio analysis can provide a measare of the company's petformance. They bave chosen Bccing as an aspirant company Would you choose Boeing as an aspirant company? Why or why nox? There are other aircraft manafac Discuss whecher it is appropriate to ase any of the following companies: Bombandiet, Embracr, and Cirrus Aircrafl Cocponation. 3. Compare the performance of S\&S Air to the induwary. For each ratio, comment on why it might be viewed as positive or acyative relative to the industry. Soppose you creale an inveritory ratio calculated as inventory Air's natie woald compate to the indowiry arerage? Ratio Analysis at S\&S Air, Inc. Chris Guthrie was recently hired by S\&S Air, Inc., to assist S S\&S Air was founded 10 years ago by friends Mark Sextoo the company with its financial planning and to evaluate and Todd Story. The company has manufactured and sold light the company's performance. Chris graduated from college airplanes over this period, and the company's products tane five years ago with a finance degree. Since then, he has received high reviews for safety and reliability. The company has been employed in the finance department of a Fortune 500 a niche market in that it sells primarily to individuals who ownt company