Given the income statement and balance sheet for Medical Equipment Corporation, compute the ratios that are also shown for the industry average. For each ratio, indicate whether Medical Equipment Corporation is better (B) or worse (W) than the industry average (SHOW YOUR WORK Income Statement Sales (all credit) $4,500,000 Less: Cost of goods sold 3,000,000 Gross profit 1,500,000 ative expenses Operating profit (EBIT $450,000 Less: Interest expense 56,250 Earnings before taxes (EBT) $393,750 Less taxes (25%) 98,438 Earnings after taxes (EAT) Note: Selling and administrative expenses include $80,000 in lease payments 295312 Balance Sheet Cash $255,050 493,150 Accounts receivable (net) Inventory 250,000 $998,200 Total current assets Net plant and equipment Total Assets 1,066020 $2,064,220 Current liabilities 450,400 Long-term liabilities Total liabilities 450,350 900,750 Common stock 387,800 Retained earnin 775,670 $1,163.470 $2,064,220 Total stockholders' e Total liabilities and stockholders' equity IndustryBetter (B) or Average Worse (W) 10.0% Medical Equipment Corporation Ratio Profit margin Return on assets 28% Return on equity Average collection period 45 days 12x Inventory turnover Total asset turnover 1.81 1.7 Current ratio 1.1 Quick ratio 3.5x Fixed charge coverage Times interest earned 6.5x