Cold Corporation Income Statement For the Year Ended December 31, 2020 Industry Averages Sales (all on credit) Cost of goods sold Gross margin Operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Taxes (2596) $ 2,200,000 1.540.000 660,000 420.000 240,000 90.000 150,000 Profit margin Return on assets Return on equity Receivables turnover Average collection period Inventory turnover Capital asset turnover 6.50 9.32% 14.82% 12.12 30.12 5.38 2.25 37 500 1.69 Net income after taxes $ 112,500 2.45 Total asset turnover Current ratio Quick ratio Total liabilities to total assets Times interest earned 1.38 52.7150 219 Cold Corporation Balance Sheet As at December 31, 2020 Assets Cash Accounts receivable Inventory Total current assets Net capital assets Talasset 5 45,000 160,000 345.000 550,000 120.000 1,670,000 Times interest eamed 2.19 Cold Corporation Balance Sheet As at December 31, 2020 Assets Cash Accounts receivable Inventory Total current assets Net capital assets Toal assets $ 45,000 160,000 345.000 550,000 1.120.000 $ 1,670,000 Liabilities and shareholders equity Accounts payable $ 115,000 Taxes payable 8.000 Total current liabilities 123,000 Long term debt 590.000 Total liabilities 713,000 Common shares 10,000 Retained earnings 947000 Total shareholders equity 957.000 Total liabilities and shareholders equity $ 1,670,000 Cold Corporation would like to buy inventory from you on credit Calculate the two ratios most relevant to this decision and determine whether you should sell to Cold Corporation on credit