Exercise 384 . Financial Ratios Analysis . (15 marks each) Filtronics is a world leader in fitness technology. The following selected data are adapted from a recent annual report. (Dollar amounts are stated in millions.) Beginning End of the Year of the Year Total current assets $ 7,322 $ 7,460 Total current liabilities. 3,535 3.147 Total assets 22,198 23,661 Total stockholders' equity 11,536 12,851 Operating income 2,594 Net income 2,169 The company has LT liabilities that bear Interest at annual rates ranging from 6 % to 8 %. Instructions 1. Compute the company's current ratio at (1) the beginning of the year and (2) the end of the year. (Carry to two decimal places.) 2. Compute the company's working capital at (1) the beginning of the year and (2) the end of the year. (Express dollar amounts in thousands) Is the company's short-term debt-paying ability improving or deteriorating? 4. Compute the company's (1) return on average total assets and (2) return on average stockholders' equity. (Round average assets and average equity to the nearest dollar and final computations to the nearest 1 percent.) 6. As an equity Investor, do you think that Filtronic's management is utilizing the company's resources in a reasonably efficient manner? Explain. 3