Compare the performance of East Coast Yachts to the industry as a whole. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How do you interpret this ratio? How does East Coast Yachts compare to the industry average?

EAST COAST YACHTS 2015 Income Statement \begin{tabular}{lr} Sales & $210,900,000 \\ Cost of goods sold & 148,600,000 \\ Other expenses & 25,192,000 \\ Depreciation & 6,879,000 \\ Earnings before interest and taxes (EBIT) & $30,229,000 \\ Interest & 3.791,000 \\ Taxable income & $26,438,000 \\ Taxes (40\%) & 10.575,200 \\ Net income & $15,862,800 \\ \hline \end{tabular} Dividends $4,759,301 Add to RE $11,103,499 EAST COAST YACHTS Balance Sheet as of December 31, 2015 Yacht Industry Ratios \begin{tabular}{lccc|} & Lower Quartile & Median & Upper Quartile \\ \hline Current ratio & .50 & 1.43 & 1.89 \\ Quick ratio & .21 & 38 & .62 \\ Total asset turnover & .68 & .85 & 1.38 \\ Inventory turnover & 6.85 & 9.15 & 16.13 \\ Receivables turnover & 6.27 & 11.81 & 21.45 \\ Debt ratio & .44 & .52 & .61 \\ Debt-equity ratio & .79 & 1.08 & 1.56 \\ Equity multiplier & 1.79 & 2.08 & 2.56 \\ Interest coverage & 5.18 & 8.06 & 9.83 \\ Profit margin & 4.05% & 6.98% & 9.87% \\ Return on assets & 6.05% & 10.53% & 15.83% \\ Return on equity & 9.93% & 16.54% & 28.14% \end{tabular}