Fox Manufacturing Company Income Statement Env Manufarturinn r nmnanu Ralanro Shoot \begin{tabular}{lc} Ratio & Industry average, 2019 \\ \hline Current ratio & 2.35 \\ Quick ratio & 0.87 \\ Inventory turnover* & 4.55 times \\ Average collection period & 35.8 days \\ Total asset turnover & 1.09 \\ Debt ratio & 0.30 \\ Times interest earned & 12.3 \\ Gross profit margin & 0.202 \\ Operating profit margin & 0.135 \\ Net profit margin & 0.091 \\ Return on total assets (ROA) & 0.099 \\ Return on common equity (ROE) & 0.167 \\ Earnings per share (EPS) & $3.10 \\ Based on a 365 -day year and on end-of-year figures. \end{tabular} Cross-sectional ratio analysis Use the financial statements for Fox Manufacturing Company for the year ended December 31,2019 , along with the industry average ratios , to: a. Prepare and interpret a complete ratio analysis of the firm's 2019 operations. b. Summarize your findings and make recommendations. a. The current ratio is (Round to two decimal places.) Fox Manufacturing's current ratio is average. (Select from the drop-down menu.) The quick ratio is (Round to two decimal places.) Fox Manufacturing's quick ratio is average. (Select from the drop-down menu.) The inventory turnover is (Round to two decimal places.) Fox Manufacturing's inventory turnover is average. (Select from the drop-down menu.) The average collection period is (Round to one decimal place.) Fox Manufacturing's average collection period is average. (Select from the drop-down menu.) The total asset turnover is (Round to two decimal places.) Fox Manufacturing's total asset turnover is average. (Select from the drop-down menu.) The debt ratio is (Round to two decimal places.) Fox Manufacturing's debt ratio is average. (Select from the drop-down menu.) The times interest earned ratio is (Round to one decimal place.) Cross-sectional ratio analysis Use the financial statements for Fox Manufacturing Company for the year ended December 31,2019, along with the industry average ratios , to: a. Prepare and interpret a complete ratio analysis of the firm's 2019 operations. b. Summarize your findings and make recommendations. Ine gross protit margin is (Kound to three decimal places.) Fox Manufacturing's gross profit margin is average. (Select from the drop-down menu.) The operating profit margin is (Round to three decimal places.) Fox Manufacturing's operating profit margin is average. (Select from the drop-down menu.) The net profit margin is (Round to three decimal places.) Fox Manufacturing's net profit margin is average. (Select from the drop-down menu.) The return on total assets (ROA) is (Round to three decimal places.) Fox Manufacturing's return on total assets (ROA) is average. (Select from the drop-down menu.) The return on common equity (ROE) is (Round to three decimal places.) Fox Manufacturing's return on common equity (ROE) is average. (Select from the drop-down menu.) Fox Manufacturing's earnings per share is average. (Select from the drop-down menu.) b. Summarize your findings and make recommendations. (Select from the drop-down menus.) Fox Manufacturing Company needs improvement in its ratios and possibly a reduction in its total The firm is more highly leveraged than the average firm in its industry and, therefore, has more financial risk. The of the firm is lower than average but is enhanced by the use of debt in the capital structure, resulting in a superior ROE