(Financial statement analysis)Carson Electronics' management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found here: LOADING... .

a.Calculate the following ratios for both Carson and BGT: Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity

b.Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that Carson's management might focus on to improve its operations.

a.Calculate the following ratios for both Carson and BGT: Carson's current ratio is nothing. (Round to two decimal places.)

Data Table - Cash Accounts receivable Inventories Current assets Net fixed assets Total assets Carson Electronics, Inc. Balance Sheet($000) $1,970 4,540 1,460 $7,970 15,970 $23,940 BGT Electronics, Inc. Balance Sheet ($000) $1,450 5,960 2,500 $9,910 25,040 $34,950 Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $2,520 1,000 3,530 $7,050 7,970 8,920 $23,940 $4,960 1,460 1,530 $7,950 4,010 22,990 $34,950 Net sales (all credit) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income taxes (40%) Net income Carson Electronics, Inc. Income Statement ($000) $47,980 (36,010) $11,970 (8,020) $3,950 (1,140) $2,810 (1,124) $1,686 BGT Electronics, Inc. Income Statement ($000) $70,050 (41,950) $28,100 (12,050) $16,050 (540) $15,510 (6,204) $9,306 Print Done Data Table - Cash Accounts receivable Inventories Current assets Net fixed assets Total assets Carson Electronics, Inc. Balance Sheet($000) $1,970 4,540 1,460 $7,970 15,970 $23,940 BGT Electronics, Inc. Balance Sheet ($000) $1,450 5,960 2,500 $9,910 25,040 $34,950 Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $2,520 1,000 3,530 $7,050 7,970 8,920 $23,940 $4,960 1,460 1,530 $7,950 4,010 22,990 $34,950 Net sales (all credit) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income taxes (40%) Net income Carson Electronics, Inc. Income Statement ($000) $47,980 (36,010) $11,970 (8,020) $3,950 (1,140) $2,810 (1,124) $1,686 BGT Electronics, Inc. Income Statement ($000) $70,050 (41,950) $28,100 (12,050) $16,050 (540) $15,510 (6,204) $9,306 Print Done