Compute each of the following ratios for 2016 and 2017 and indicate whether each ratio was getting "better" or "worse" from 2016 to 2017 and was "good" or "bad" compared to the Industry Avg for 2016. (round all numbers to 2 digits past the decimal place)

Type your answers in the table and submit this document.

Ratios	2016		2017		Enter Better or Worse		Industry Avg	Enter "Good" or "Bad" compared to Industry Avg
Profit Margin	1		11		21		0.11	31
Current Ratio	2		12		22		1.90	32
Quick Ratio	3		13		23		1.12	33
Return on Assets	4		14		24		.26	34
Debt to Assets	5		15		25		.55	35
Receivables turnover	6		16		26		18.00	36
Avg. collection period*	7		17		27		21.20	37
Inventory Turnover**	8		18		28		8.25	38
Return on Equity	9		19		29		0.25	39
Times Interest Earned	10		20		30		8.15	40

*Assume a 360 day year

**Inventory Turnover can be computed 2 different ways. Use the formula listed in the text

(the one the text indicates many credit reporting agencies generally use)

Use the following information to answer the questions below:
note: all sales are credit sales
Income Stmt info:	2016	2017
Sales	$ 975,000	$ 1,072,500
less Cost of Goods Sold:	325,000	346,125
Gross Profit	650,000	726,375
Operating Expenses	575,000	609,500
Earnings before Interest & Taxes	75,000	116,875
Interest exp	25,000	31,000
earnings before Taxes	50,000	85,875
Taxes	20,000	34,350
Net Income	$ 30,000	$ 51,525
Balance Sheet info:	12/31/2016	12/31/2017
Cash	60,000	$ 63,600
Accounts Receivable	80,000	$ 84,000
Inventory	110,000	$ 126,500
Total Current Assets	$ 250,000	$ 274,100
Fixed Assets (Net)	$ 300,000	$ 312,000
Total Assets	$ 550,000	$ 586,100
Current Liabilities	$ 130,000	$ 149,500
Long Term Liabilities	$ 150,000	$ 170,000
Total Liabilities	$ 280,000	$ 319,500
Stockholder's Equity	$ 270,000	$ 266,600
Total Liab & Equity:	$ 550,000	$ 586,100