Compare the performance of S&S Air to the industry. 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 think S&S Airs ratio would compare to the industry average?

S&S AIR, INC. 2018 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (25%) Net income Dividends Add to retained earnings $46,298,115 34,536,913 5,870,865 2,074,853 $ 3,815,484 725,098 $ 3,090,386 772,597 $ 2,317,789 $ 705,000 1,612,789 S&S AIR, INC. 2018 Balance Sheet Assets Liabilities and Equity Current assets Current liabilities Cash Accounts receivable 524,963 843,094 1,235,161 $ 2,603,218 Accounts payable Notes payable Total current liabilities $ 1,068,356 2,439,553 $ 3,507,909 Inventory Total current assets Long-term debt $ 6,300,000 Fixed assets Net plant and equipment $20,381,945 $ 460,000 Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity 12,717,254 $13,177,254 $22,985,163 Total assets $22,985,163 Light Airplane Industry Ratios Lower Quartile Upper Quartile Median .50 1.43 1.89 Current ratio Quick ratio .62 .39 1.38 .35 .21 .85 6.15 9.82 .52 10.89 14.11 .21 .08 .68 4.89 6.27 .41 .68 1.68 5.18 5.84 Cash ratio Total asset turnover Inventory turnover Receivables turnover Total debt ratio Debt-equity ratio Equity multiplier Times interest earned Cash coverage ratio Profit margin Return on assets Return on equity 1.08 2.08 8.06 .61 1.56 2.56 9.83 10.27 9.41 4.05% 7.15% 6.05% 5.10% 9.53% 15.14% 13.21% 9.93% 19.15%