GREAT GIFT SHOP, INC.
	Income Statement for Year Ended December 31, 2019
		-------------2019---------------
		DOLLARS	% OF SALES
Sales Revenue		7,800,000	100.00%
Cost of Goods Sold		4,800,000	61.54%
Gross Profit		3,000,000	38.46%
Selling Expense		1,540,000	19.74%
General and Administrative Expense		95,000	1.22%
Depreciation Expense		125,000	1.60%
Operating Profits (EBIT)		1,240,000	15.90%
Interest Expense		750,000	9.62%
Profit Before Taxes		490,000	6.28%
Less: Taxes @ 40%		196,000	2.51%
Net Profit After Taxes		294,000	3.77%
	GREAT GIFT SHOP, INC.
	Balance Sheet As of December 31, 2019
		-------------2019---------------
		DOLLARS	% OF ASSETS
ASSETS:
Cash		95,000	0.86%
Accounts Receivable		1,200,000	10.87%
Inventories		3,200,000	29.00%
Total Current Assets		4,495,000	40.73%
Net Fixed Assets		6,540,000	59.27%
TOTAL ASSETS		11,035,000	100.00%
LIABILITIES AND EQUITY:
Accounts Payable		1,750,000	15.86%
Notes Payable		800,000	7.25%
Accruals		75,000	0.68%
Total Current Liabilities		2,625,000	23.79%
Long-Term Debt		3,885,000	35.21%
TOTAL LIABILITIES		6,510,000	58.99%
Common Stock at Par Value		50,000	0.45%
Paid-In Capital in Excess of Par Value		75,000	0.68%
Retained Earnings		4,400,000	39.87%
TOTAL STOCKHOLDERS' EQUITY		4,525,000	41.01%
TOTAL LIABILITIES AND EQUITY		11,035,000	100.00%

Calculate the following ratios for 2019 for Great Gift Shop, Inc.:

b. debt ratio: 60%

c. return of equity: 10.5%

d. current ratio: 1.3

e. inventory turnover: 8.1

f. times interest earned: 2.5

g. net profit margin: 3.78%

h. return on Toal assets: 4.36%

e. Based on the ratios you have calculated above, does Great Gift Shop, Inc. appear to be stronger or weaker than the industry average data? Which specific ratios led you to this conclusion?