Directions: Given the financial statements of Easy Peasy Company on the left, please calculate the following ratios and fill in the table below Please also indicate where Easy Peasy is doing B-better or W-worse against the industry average for each ratio. Easy Peasy Company Income Statement for year ended December 31, 2008 Please scroll down for all of the statements Ratio Better (B) or Worse (W) 2 points for each ratio 1 point for each B or W correct answer Total = 39 points Revenues $ 259,000 Cost of goods sold $ 154,000 Selling, general, & administrative expenses $ 46,000 Net operating profit $ 59,000 Interest expense $ 4,500 Earnings before taxes $ 54,500 Taxes at 40% $ 21,800 Net Income $ 32,700 Profit margin Return on assets Return on equity Receivables turnover DSO Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned Fixed charge coverage Easy Peasy Industry Average 10.0% 9.00% 12.0% 5x 60 days 1.Ox 1.4x ** Includes $2000 of lease expenses 1.0x 2.00x 1.00x 30% 10.0x 7.Ox Easy Peasy Company Balance Sheet for year ended December 31, 2008 Assets Current Assets Cash Accounts Receivable Inventories Total Current Assets Plant and equipment (net) Total Assets $ 11,500 $ 49,000 $ 147,500 $ 208,000 $ 177,000 $ 385,000 Liabilities and Stockholders' Equity Liabilities Current Liabilities Accounts Payable Other Total Current Liabilities Bonds Payable Total Liabilities $ 81,500 $ 22,500 $ 104,000 $ 100,000 $ 204,000 Stockholders' Equity Common Stock (50,000 shares, $3 par) Paid-In Capital in excess of par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 150,000 $ 20,000 $ 11,000 $ 181,000 $ 385,000