Joseph Berio is a loan officer with the First Bank of Tennessee. Red Brick, Inc., a major producer of masonry products, has applied for a short-term loan. Red Brick supplies building material throughout the southern states, with brick plants located in Tennessee, Alabama, Georgia, and Indiana. The firms income statement and balance sheet are given below. The third table presents both a ratio analysis of Red Bricks previous years financial statements and the industry averages of the ratios.

Red Brick Income Statement
(for the period ending December 12/31/20X1)
Sales	$	209,000,000
Cost of goods sold		166,000,000
Administrative expenses		28,000,000
Operating income	$	15,000,000
Interest expense		9,000,000
Taxes		300,000
Net income	$	5,700,000

Red Brick Balance Sheet as of 12/31/20X2
Assets				Liabilities and Stockholders Equity
Cash	$	600,000		Accounts payable	$	44,000,000
Accounts receivable		33,000,000	*	Notes payable		9,000,000
Inventory		79,500,000		Long-term debt		48,000,000
Plant and equipment		125,000,000		Stockholders equity		137,100,000
	$	238,100,000			$	238,100,000
*70% of sales are on credit.
Previous years inventory was $69,100,000.

	Companys Ratios	Industry
	(Previous Year)	Average
Current ratio	2.2:1	2.3:1
Quick ratio	0.6:1	0.8:1
Inventory turnover	4.0x	4.5x
Average collection period	51 days	52 days
Debt ratio (debt/total assets)	31%	42%
Times-interest-earned	1.7	3.5
Return on equity	4.4%	14.1%
Return on assets	2.6%	10.4%
Operating profit margin	5.5%	15.2%
Net profit margin	2.1%	9.0%

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 365 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.

Current ratio of __ times is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower or than equal to) the ratio in the previous year.

Quick ratio of ___ times is (Select-higher than or lower than or equal to) the industry average and -(Select-higher than or lower than or equal to) the ratio in the previous year.

Inventory turnover ratio of___ is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower than or equal to) the ratio in the previous year.

Average collection period of___ days is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower than or equal to) the ratio in the previous year.

Debt ratio of ___ % is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower than or equal to) the ratio in the previous year.

Times-interest-earned ratio of____ is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower than or equal to) the ratio in the previous year.

Return on equity ratio of___ % is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower than or equal to) the ratio in the previous year.

Return on assets ratio of ___ % is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower than or equal to) the ratio in the previous year.

Operating profit margin ratio of ____ % is (Select-higher than or lower than or equal to) the industry average and (Select-higher than or lower than or equal to) the ratio in the previous year.

Net profit margin ratio of ___ % is (Select-higher than or lower than or equal to) the industry average and -(Select-higher than or lower than or equal to) the ratio in the previous year.