Parker Corporation is a machinery manufacturing company located in Morganton, NC, USA. The companys management wanted to measure their performance compared to the Industry (Table 2).

A) Using the latest financial statements, which is given below (Table1) calculate the following performance measures:

1- Current Ratio

2- Quick Ratio

3- Average Collection Period

4- Operating Return on Assets

5- Debt Ratio

6- ROE

Table 1: Financial Statements Parker Corporation Financial Statements For the year ended December 31, 2019 Balance Sheet Income Statement Assets: Cash $184,000 Sales (all credit) $7,200,000 Accounts receivable 320,000 Cost of goods sold (3,640,000) Inventory 440.000 Operating expense (2,520,000) Net fixed assets 1,800,000 Operating profit 1,040,000 Total assets $2,744,000 Interest expense (160,000) Income taxes (344,000) Liabilities and owners' equity: Net income $536,000 Accounts payable $160,000 Long-term Notes payable 360,000 Long-term debt 864,000 Owners' Equity 1,360,000 Total liabilities and owner's equity $2,744,000 Earnings Per Share 1.76 Market price per share = 25 Table 2: Industry Average Ratio Current Ratio Industry Average 6.1 3.80 Quick Ratio Average Collection Period Operating Return on Assets Debt Ratio 18 Days 40% 51% ROE 45.33%