Newton Motor Cars				Industry Average Ratios
Income Statement	2018	2017	2016			2018	2017	2016
					Current Ratio	1.0	1.5	1.5
Sales	1,800	1,650	1,500		Debt to Assets	60%	60%	60%
					Asset Turnover	2.5	2.2	2.0
COGS	780	765	750		Profit Margin	6%	5%	4%
Depreciation	300	300	300		Sales Growth	3.0%	2.5%	3.0%
Selling, general & admin	1,050	975	900		Profit Growth	20%	25%	5.0%
Taxes	150	150	150
Net income	-480	-540	-600
Balance Sheet	2015	2014	2013
Current assets	600	675	600
Property, plant & equipment	900	825	900
Total assets	1,500	1,500	1,500
Current liabilities	525	600	600
Long-term liabilities	225	150	150
Equity	750	750	750
Total Liabilities & equity	1,500	1,500	1,500

Which of the following items do not characterize Newton Motor Cars? Explain your answer.

a. Positive sales growth

b. Increasing profit margin

c. High debt and profitable

d. All of the above characterize Newton Motor Cars

Part 1 - Answer

Part 2 explane