Given the balance sheet and income statement for Simmons Maintenance Company, compute the ratios below. The "right answer" refers to the question of whether a particular ratio for Simmons is better or worse than the industry average. SIMMONS MAINTENANCE COMPANY Assets Cash Balance Sheet Liabilities $15,000 Accounts Payable $21,000 Accts. Receivable Inventory 22,000 Notes Payable 20,000 30,000 Accrued Expenses 5,000 Current Assets Net Capital Assets 67,000 Current Liabilities 46,000 73,000 Long-term Debt 30,000 Shareholders' Equity 64,000 Total Liabilities & Total Assets $140,000 Shareholders' Equity $140,000 Sales: (80% credit) Income Statement $120,000 Less: Cost of Goods Sold 45,000 Gross Profit 75,000 Selling and Administrative Expense 20,000 Rent Expense (Lease) 8,000 28,000 EBIT 47,000 Interest Expense 5,000 Earnings before taxes 42,000 Taxes (@25%) Net Income Common shares outstanding 10,500 $31,500 EPS Common shares outstanding 15,000 EPS $2.10 Ratio Ratios for Industry Circle the right Simmons Average answer Profit margin Return on investment Return on equity 17.5% Better worse 20.8% Better worse 35% Better worse Receivables turnover Avg. collection period Inventory turnover Capital asset turnover Total asset turnover Current ratio Quick ratio 4.4x Better worse 68.0 days Better worse 3.5x Better worse 2.4x Better worse .76x Better worse 1.28 Better worse 85 Better worse Debt to total assets 45 Better worse Times interest earned 12.0x Better worse Fixed charge coverage 3.6x Better worse