JJustine trumean is a chess Enthusiast and CEO of Chess Perfect, a company which manufactures chess sets and distributes them across North America. As Justine purchased a majority stakes in the business recently an tool over the CEO role, she is still seeking some help with fully understanding the business. Chess perfect produces several types of ches sets from vinyl to titan materials. It has two business units. One vinyl and the premium titan business unit. Justine has strong manufacturing plants and a great team of management including a general manager, sales manager, production manager and HR manager. She wishes to get advice, amongst other things on running an ethical business (including accounting -specific elements).

In the most recent management meeting, Justine and her management team discussed some of the current financial results of the company.

		Chess perfect	Industry average
	profitibility
	Profit margine (%)	9.8	11.2
	Return on total assets (%)	8.4	10.1
	Return on equity	10	13
	Capital structure
	Non current to current assets (%)	86	101
	Debt ratio (%)	47	65
	Interest earned (times)	23	12
	effeciency
	Inventory turnover (times)	3.5	5.5
	Average collection period (days)	35	28
	Non-current asset turnover (times)	2.4	3.1
	Liquidity
	Current ratio (times)	2.3	1.6
	Quich ratio (times	1.7	1.1

Here is the script from the management meeting:

Concerns were raised by the factorys Production manager, who is known for his practical approach. This ratio business doesnot appeal to me at all. You can never be sure that the figures are prepated consistently on the same basis. I prefer looking at the absolute amount, which is much more useful, in my opinion.