Compute each of the following ratios for 2019 and 2020 and
indicate whether each ratio was getting "better" or "worse" from 2019 to 2020
and whether the 2020 ratio was "good" or "bad" compared to the Industry Avg
(round all numbers to 2 digits past the decimal place)
	2019	2020	Getting Better or Getting Worse?	2020 Industry Avg	"Good" or "Bad" compared to Industry Avg
Profit Margin				0.08
Current Ratio				1.80
Quick Ratio				1.12
Return on Assets				0.18
Debt to Assets				0.60
Receivables turnover				12.00
Avg. collection period*				22.10
Inventory Turnover**				8.25
Return on Equity				0.16
Times Interest Earned				8.15
*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)

Aurine Comprehenswe Problem 1 Fall in WORD - Word Search calabros CD Pic Home Insert Design Layout References Malings Review View Help Picture Format Share Comments CO A Fi Compress Pictures Corrections Color Trency - Elu Reset Picture CO2 Picture order 2 Pictureittects Picture Layout twighe 7.17 COD Width 525 Remove Trharge Picture AP Text Acesul Postin Wrap Prin Selection Mign Group Roth Test - Forward - Buwad - Pane Arrange Picture Style BUSI 320 Comprehensive Problem 1 Version FALL Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: Sales $ less Cost of Goods Sold: Gross Profit Operating Expenses Earnings before Interest & Taxes 2019 800,000 $ 220,000 580,000 480,000 1000 100,000 25,000 75,000 25,000 50,000 2020 880,000 240,000 640,000 505,000 1600 135,000 25,000 110,000 30,000 80,000 Interest exp earnings before Taxes Taxes KAS Net Income's Balance Sheet Info: Cash Accounts Receivable Inventory Total Current Assets Fixed Assets (Net) Total Assets 12/31/2019 60,000 $ 90,000 $ 110,000 $ 260,000 S 300,000S 560,000 $ 12/31/2020 65,000 95,000 130,000 S $ $ 290,000 330,000 620,000 Current Liabilities Long Term Liabilities Total Liabilities Stockholder's Equity Total Liab & Equity: S $ $ $ 130,000 S 170,000 $ 300,000 $ 260,000 S 560,000 $ 140,000 200,000 340,000 280,000 $ 620,000 Crocus Page 1 2 131 wards LX Type here to search 4:44 PM 2011/2012