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Homeph Dario salon officer with the First Bank of Tennesson, Red Brick, Inc., a major producer of masonry products, has applied for a short term

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Homeph Dario salon officer with the First Bank of Tennesson, Red Brick, Inc., a major producer of masonry products, has applied for a short term loan. Red trick poles being material throughout the southern states, with brick plants located in Tennessee, Alabama, Georgia and Indiana The fom income statement and balance sheet are given below. The third table presents both a ratio analysis of Red Brick's previous year's financial statements and the industry averages of the ratios Red Brick Income Statement (for the period ending December 12/31/20X1) Sales $243,000,000 Cost of goods sold 126,000,000 Administrative expenses 23,000,000 Operating income $ 94,000,000 Interest expense 8,000,000 Taxes 400,000 Net Income $ 85,600,000 Red Brick Balance Sheet as of 12/31/20X2 Assets Liabilities and Stockholders' Equity Cash $ 400,000 Accounts payable $ 41,000,000 Accounts receivable 28,000,000 Notes payable 15,000,000 Inventory 71,600,000+ Long-term debt 51,000,000 Plant and equipment 133,000,000 Stockholders' equity 126,000,000 $ 233,000,000 $ 233,000,000 90% of sales are on Credit Previous year's inventory was $49,000,000 Company's Ratios Industry (Previous Year) Average 1.5:1 2.3:1 0:5:1 0.8:1 6.9x 29 days 4.6x 55 days 47% 31% Current ratio Quick ratio Inventory turnover Average collection period Debt ratio (debt/total assets) Times-interest-earned Return on equity Return on assets Operating profit margin Net profit margin 11.8 3.6 76.6% 14,2% 10.2% 40.7% 29.8% 15.2% 8.8% 27.1% To help decide whether to grant the loan, compute the following ratios and compare the results with the company's previous year ratios and industry averages. Assume there are 165 days in a year. Do not round Intermediate calculations, Round your answers to two decimal places Current ratio of times is higher than the industry average and higher than the ratio in the previous year Stec Quick ratio of times is higher than le industry average and higher than the ratio in the previous year, Tnventory turnover ratio of the industry average and select the ratio in the previous year Average collection period of days is higher than the industry average and Select the ratio in the previous year Debt ratio of higher than the industry average and select the ratio in the previous year Times interest earned ratio of is higher than the industry average and select the ratio in the previous year Return on equity ratio of the Industry average and select the ratio in the previous year Return on assets ratio of Select the Industry average and select the ratio in the previous year Operating profit margin ratio of 96 is Select the industry average and select the ratio in the previous year. Net profit margin ratio of Weiss the industry average and select- the ratio in the previous year

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