Interpret your findings (Explain Efficiency Ratios)

Account Receivable Turnover Ratio=Net Sales /Average Accounts Receivable=19K/105K=0.18 Asset Turnover Ratio=Net Sales/ Average Total Assets=19K/446K=0.04 Inventory Turnover Ratio= Cost of Goods Sold (COGS)/ Average Total Inventory=380K/140K=2.71 Days' Sales in Inventory = Ending Inventory/ Cost of Goods Sold (COGS)=45K/380K=0.11

\begin{tabular}{|c|c|c|} \hline & 2015 & 2016 \\ \hline Net sales & $438,000 & $575,000 \\ \hline -Cost of goods sold & 285,000 & 380,000 \\ \hline Gross profit & 153,000 & 195,000 \\ \hline -Administrative expenses & 45,000 & 65,000 \\ \hline -Marketing expenses & 32,000 & 39,000 \\ \hline -Research and development & 20,000 & 27,000 \\ \hline -Depreciation & 14,000 & 17,000 \\ \hline EBIT & 42,000 & 47,000 \\ \hline -Interest expense & -12.000 & 20,000 \\ \hline Income before taxes & 30,000 & 27,000 \\ \hline -Income taxes ( 30% rate) & 9,000 & 8,000 \\ \hline Net income & $21,000 & $19,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & 2015 & 2016 \\ \hline \multicolumn{3}{|l|}{ Cash Flow from Operating Activities } \\ \hline Net Income & $21,000 & $19,000 \\ \hline + Depreciation & 14,000 & 17,000 \\ \hline - Increase in receivables & 15,000 & 30,000 \\ \hline - Increase in inventories & 25,000 & 45,000 \\ \hline+ Increase in payables & 10,000 & 27,000 \\ \hline+ Increase in accrued liabilities & 1,000 & 1,000 \\ \hline Net Cash Flow from Operations & 6,000 & 11,000 \\ \hline \multicolumn{3}{|l|}{ Cash Flow from Investing Activities } \\ \hline - Increase in gross equipment & 0 & 50,000 \\ \hline Net Cash Flow from Investing Activities & 0 & 50,000 \\ \hline \multicolumn{3}{|l|}{ Cash Flow from Financing Activities } \\ \hline + Increase in short-term bank loan & 4,000 & 66,000 \\ \hline - Decrease in long-term debt & 10,000 & 10,000 \\ \hline Net Cash Flow from Financing & 6,000 & 56,000 \\ \hline Net Change Excluding Cash Account & 0 & 5,000 \\ \hline Beginning Cash and Marketable Securities & 10,000 & 10,000 \\ \hline Ending Cash and Marketable Securities & $10,000 & S 5,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline & 2014 & 2015 & 2016 \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash and marketable securities & S 10,000 & $10,000 & \$ 5,000 \\ \hline Receivables & 60,000 & 75,000 & 105,000 \\ \hline Inventories & 70,000 & 95,000 & 140.000 \\ \hline Total current assets & 140,000 & 180,000 & 250,000 \\ \hline Gross plant and equipment & 205,000 & 205,000 & 255,000 \\ \hline Less: accumulated depreciation & 28,000 & 42,000 & 59,000 \\ \hline Net plant and equipment & 177,000 & 163,000 & 196,000 \\ \hline Total assets & $317,000 & $3.43,000 & $446,000 \\ \hline \multicolumn{4}{|l|}{ Liabilities and Equity } \\ \hline Payables & 47,000 & 57,000 & 84,000 \\ \hline Short-term bank loan & 40,000 & 44,000 & 110,000 \\ \hline Accrued liabilities & 8,000 & 9.000 & 10,000 \\ \hline Total current liabilities & 95,000 & 110,000 & 204,000 \\ \hline Long-term debt & 100,000 & 90,000 & 80,000 \\ \hline Owners' equity & 122,000 & 143,000 & 162,000 \\ \hline Total liabilities and equity & $317,000 & $343,000 & $446,000 \\ \hline \end{tabular}