LG 3 LG 4 LG 5 LG 3 LG 4 LG 5 ST3-1 ST3-2 Ratio formulas and interpretations Without referring to the text, indicate for each of the following ratios the formula for calculating it and the kinds of problems, if any, the firm may have if that ratio is too high relative to the industry average. What if the ratio is too low relative to the industry average? Create a table similar to the one that follows and fill in the empty blocks. Ratio Current ratio= Inventory turnover = Times interest earned = Gross profit margin Return on total assets = Price/earnings (P/E) ratio = Assets Cash Balance sheet completion using ratios Complete the 2015 balance sheet for O'Keefe Industries using the information that follows it. Marketable securities Accounts receivable Inventories T Total current assets Net fixed assets Total assets Too high O'Keefe Industries Balance Sheet December 31, 2015 Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals $32,720 25,000 Too low Total current liabilities Long-term deb