Financial statement information is provided for the three years ending December 31, 2015, 2016 and 2017.

	2017	2016	2015
Cash	$443,550	$355,750	$142,800
Accounts Receivable	$59,600	$62,500	$58,400
Merchandise Inventory	$87,000	$90,100	$85,000
Prepaid Expenses	$6,400	$5,800	$5,800
Notes Receivable, due in 2018	$5,000	$5,500	$5,000
Property, Plant & Equipment	$580,175	$518,525	$528,950
Accumulated Depreciation	$114,175	$96,525	$97,950
Accounts Payable	$16,900	$17,800	$15,000
Unearned Sales	$6,100	$6,500	$7,400
Notes Payable, due in 2017	$119,000	$126,000	$124,000
I.C. Rhodes, Capital	$1,075,550	$931,350	$701,600
I.C. Rhodes, Withdrawals	$150,000	$140,000	$120,000
Sales	$431,900	$525,900	$556,300
Cost of Goods Sold	$130,200	$168,100	$219,100
Operating Expenses	$167,500	$148,050	$206,750

1. Calculate the following ratios for 2017. Round all ratios to two decimals.

a. Gross Profit Ratio b. Merchandise Inventory Turnover

c. Days Sales in Inventory d. Quick Ratio

e. Accounts Receivable Turnover Ratio f. Days Sales Uncollected

Gross Profit Ratio = (Gross Profit)/(Net Sales) 100%

Merchandise Inventory Turnover = (Cost of Goods Sold)/(Average Merchandise Inventory)

Days Sales in Inventory = (Ending Inventory)/(Cost of Goods Sold)365

Quick Ratio = (Quick Assets)/(Current Liabilities)

Accounts Receivable Turnover= (Net Sales)/(Average Accounts Receivable)

Days' Sales Uncollected= (Accounts Receivable)/(Net Sales)365

2. Using YOUR answer (from part 1), compare the ratio to the industry average provided and, state whether the change is Favourable, Unfavourable, or Neither. (Note: marks will not be awarded for simply guessing Favourable, Unfavourable or Neither without supporting ratio calculations.)

	2017	2016	Favourable, Unfavourable, or Neither
a) Gross Profit Ratio		68.04
b) Merchandise Inventory Turnover		1.92
c) Days Sales in Inventory		195.64
d) Quick Ratio		17.21
e) Accounts Receivable Turnover Ratio		8.70
f) Days Sales Uncollected		43.38