Finance midterm part 2 Use the financial statements Salim's Fitness Studio to calculate the following ratios as of December 31, 2019 a. Current ratio b. Quick ratio C. Accounts receivable turnover d. Days' sales uncollected e. Inventory turnover f. Debt ratio g. Pledged assets to secured liabilities h. Times interest earned I. Profit margin j. Total asset turnover k. Return on total assets I. Return on common shareholders equity. Given the table below: Indicate whether each of the ratios calculated above for Salim's Fitness Studio inc. compares favorably or unfavourably to the industry average ratios given. Industry ratio Salim's Fitness Studio inc. 1.6:1 Current ratio 1.1:1 Quick ratio Accoun ceivable 16 time turnover 21 days Days sales uncollected 5 times Inventory turnover Debt ratio 35% 1.4:1 Pledged assets to secured liabilities Times interest earned 50 time Profit margin 14% Total asset turnover 2.3 time Return on total assets 20% Return on common shareholders equity 32.7% Comparative Income Statement For Years Ended 2019 and 2018 2019 in (000) Net sales 1867 Cost of goods sold 1099 Gross profit from sales 768 Operating expenses: Advertising expense Sales salaries expense 90 252 Office salaries expense 180 Insurance expense 40 31 Supplies expense Depreciation expense Miscellaneous expenses 67 13 Total operating expenses 673 Operating income 95 Less interest expense 41 Profit before taxes 54 Income taxes 17 profit 37 Earnings per share 0.36 | 2019 in (000) 2018 1867 2734 1099 167 768 106 190 159 252 264 180 181 40 1100 31 28 67 93 5 13 18 s 673 853 95 206 141 48 54 158) 17 51 37. 107 0.36 1.08 Salim's Fitness Studio Inc. Comparative Balance Sheet As at December 31 2019 in (000) Assets Current assets cash investments Accounts receivable(net) inventory el current assets Property plant equipment Land Store equipment (net) Office equipment (net) Buildings (net) Total property, plant and equipment Total assets Liabilities Current liabilities 209 Accounts payable Current notes Puyole 8:16 AM Salim's Fitness Studio Inc. Comparative Balance Sheet As at December 31 (000) 2018 in (000) 46 87 106 72 110 132 292 275 554 566 110 110 385 440 55 50 743 688 1293 1288 1847 1854 180 82 28 8:15 AM Total current liabilities 321 Non-current liabilities 440 Notes payable (secured by mortgage on building and land) Total liabilities 761 equity Contributed capital Common shares 522 Retained earnings 564 Total equity 1086 Total liabilities and equity 1847 8:15 AM es 321 290 S ured by 440 ig and 440 761 730 522 522 564 602 1086 1124 equity 1847 1854 8:15 AN