P 6-19 J.A. Appliance Company has supplied you with the following data regarding work- ing capital and sales for the

years 2011 2010, 2009.

Working capital $270,000 $ 260,000 $ 240,000

Sales $650,000 $600,000 $ 500,000

The industry average for the ratio of sales to working capital. 4.10 times 4.05times 4.00times

Required a. Compute the sales to working capital ratio for each year.

b. Comment on the sales to working capital ratio for J.A. Appliance in relation to the industry average and what this may indicate.