Paragraph Styles QUESTION 3 (20%) The following information is an extract from Carson Electronics' financial statements for the 2018 - 2019 financial year: Inventory $1,500,000 Net receivables $4,550,000 Net credit sales $8,000,000 Current assets $8,830,000 Non-current assets $1,650,000 $2,450,000 Account payable Bank Bill (Short term) Long Term debt $430,500 $255,500 $7,840,000 $505,300 Ordinary equity Net operating income Cost of goods sold Interest expense Tax rate $255,000 $ 75,000 30% Ratios Industry Benchmark (Average) Current ratio 2.1 D Focus . O BE e # B PauseBr % A A A EL AaBb CcDe AaBbcc AaBbcc AaBbce L-A-B Emphasis Heading 2 1 Normal Strong LONG TETTU Paragraph P200,000 Styles Ordinary equity Net operating income Cost of goods sold $7,840,000 $505,300 $255,000 $ 75,000 30% Interest expense Tax rate Ratios Industry Benchmark (Average) Current ratio 2:1 Receivable turnover 5 times Average age of receivables 90 days Inventory Turnover 2.2 times Debt-to-equity ratio 33 Net working capital Positive Return on assets 10% Return on equity 9.05% o 22 Focus e . > Styles Editi Required: Calculate the following ratios and compare your results with industry benchmark stated above: a) Current ratio: Current assets/Current liabilities b) Receivable tumover. Total Credit Sales / Average Accounts Receivable c) Average age of receivables: (Accounts Receivable * 385) / Sales Revenue d) Inventory Turnover: Sales / Inventory e) Debt-to-equity ratio: Total Debts / Total Equity f) Net working capital: Current Assets - Current Liability 9) Return on assets: Net Income / Average Total Assets h) Return on equity: Net Income ! Average Shareholders' Equity [Answer and show workings in the below template] Use the following template to answer your calculation, compare the result with Industry average and Interpretation of your result Ratio formula Compare with Interpretation (with calculation) Industry Average 3