EXHIBIT 17.11 2020 Playground Equipment Industry Average Ratios Current ratio Quick ratio.......... Accounts receivable turnover Days' sales uncollected.. Inventory turnover Days' sales in inventory. Total asset turnover....... Accounts payable turnover. Debt ratio Equity ratio...... Pledged assets to secured liabilities. 1.6:1 1.1:1 16 times 21 days 5 times 70 days 2.3 times 4 times 35% 65% 1.4:1 Times interest earned. Profit margin Gross profit ratio. Return on total assets Return on common shareholders' equity.... Book value per common share. Book value per preferred share. Earnings per share.......... Price-earnings per share. Dividend yield 50 times 14% 18% 20% 32.7% $8.63 $15.00 $1.79 18.2 $0.35 Web Structure Inc. calculated the ratios shown below for 2020 and 2019: Comparison to Industry Average 2020 Change For U 2019 1.08:1 0.99:1 16 35 Current ratio Quick ratio...... Accounts receivable turnover Days' sales uncollected. Inventory turnover.... Days' sales in inventory. Total asset turnover Debt ratio 0.97:1 0.84:1 18 31 7 6 49 37 1.8 3.2 67 47 Times interest earned.. 2.2 6.3 15 18 Profit margin Gross profit ratio... 17 16 *F= Favourable; U = Unfavourable Required 1. Identify whether the change in the ratios from 2019 to 2020 is favourable (F) or unfavourable (U). 2. Assess whether the 2020 ratios are favourable or unfavourable in comparison to the industry averages shown in Exhibit 17.11