Part F. Please refer to Financial Statement of Pharmacy Express. (10 pts.) Study the balance sheet and income statement. Select 6 ratios (2 profitability, 2 liquidity, 2 turnover and speculate why these ratios are different from the industry trends. (there is no one only correct answer) 1. 2. 3. 4. 5. 6. What could be happening to cash and owners' equity? PROFITABILITY RATIOS Industry trends Gross Profit Margin 23.6% 26% Net Profit Margin 2.5% 3.5% Return on Assets 21.3% 18% Return on Equity -133.9% 20% LIQUIDITY RATIOS 2. Current ratio 0.80 1.3 Quick ratio 0.30 0.06 Cash ratio 0.06 1.8 (cash to liabilities) Debt-to-Assets ratio 135% 80 Debt-to-Equity ratio -386% 38 TURNOVER RATIOS Inventory turnover 2.95 11 Number of days 123.79 37 Receivables turnover ** 5.71 15 Number of days 63.88 64 ** Approximately 70% of Sales were credit sales