P4-12 Calculating activity and profitability ratios LO4-10 Financial statements for Askew Industries for 2018 are shown below (in thousands): 2018 Income Statement Sales $9,000 Cost of goods sold (6,300) Gross profit 2,700 Operating expenses Interest expense Tax expense (200) (200) $ 300 Net income (2,000) flows from Comparative Balance Sheets Dec. 31 2018 2017 Assets 8: Cash $ 600 $ 500 Accounts receivable 600 400 Inventory 800 2 600 Property, plant, and equipment (net) 2,000 2,100 $4,000 $3,600 Liabilities and Shareholders' Equity Current liabilities $1,100 $ 850 Bonds payable 1,400 1,400 600 600 Paid-in capital Retained earnings 900 750 $4,000 $3,600 Required: Calculate the following ratios for 2018. 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio 4. Average collection period 5. Asset turnover ratio: 6. Profit margin on sales 7. Return on assets 8. Return on shareholders' equity 9. Equity multiplier 10. Return on shareholders' equity (using the DuPont framework) 580 from those of two actual companies competing ont ner share