Income Stmt info: 2018 2019

Sales $1,000,000 $1,050,000

less Cost of Goods Sold: 400,000 432,000

Gross Profit 600,000 618,000

Operating Expenses 350,000 365,750

Earnings before Interest & Taxes 250,000 252,250

Interest exp 20,000 20,400

earnings before Taxes 230,000 231,850

Taxes 69,000 69,555

Net Income $161,000 $162,295

Balance Sheet info: 12/31/2018 12/31/2019

Cash 25,000 $30,000

Accounts Receivable 50,000 $54,000

Inventory 125,000 $130,000

Total Current Assets $200,000 $214,000

Fixed Assets (Net) $300,000 $318,000

Total Assets $500,000 $532,000

Current Liabilities $110,000 $119,900

Long Term Liabilities $180,000 $175,000

Total Liabilities $290,000 $294,900

Stockholder's Equity $210,000 $237,100

Total Liab & Equity: $500,000 $532,000

Compute each of the following ratios for 2018 and 2019 and indicate whether each ratio was getting "better" or "worse" from 2018 to 2019 and was "good" or "bad" compared to the Industry Avg in 2019 (round all numbers to 2 digits past the decimal place)

2018 2019 Getting Better or Getting Worse? 2019 Industry Avg "Good" or "Bad" compared to Industry Avg

Profit Margin 0.11

Current Ratio 1.90

Quick Ratio 0.66

Return on Assets .28

Debt to Assets .50

Receivables turnover 18.00

Avg. collection period* 15.50

Inventory Turnover** 9.25

Return on Equity 0.55

Times Interest Earned 13.20

*Assume a 360 day year **Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use)