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Consider the following financial data for Ben's Music Stores: 85.000 1732500 95.500 354000 310.000 43.000 1.107.000 Balance Sheet as of December 31, 2012 Cash $ 91,000 Accounts payable $ Accountable 165,000 Shortterm banknote Invento 387.000 Accred was taxes Total $ 643,000 Total short term lih 5 Long term debt 464.000 Common equity Total 1.107.000 Total learnities & Althy 5 Statement of Earnings for the Year Ended December 31, 2012 5 $ 877,500 Cost of merchandise sold 529.000 Cross profit $ 298,500 Operating expen 157.500 Filming before interest and two (EBIT) 5 131.000 Intep 35.500 $ Earnings before (EBT) 92,500 Federal and state income taxes (40 percent 37.000 $ Netcon 55.500 Calculate Ben's current ratio. O2.0.72 b. 1.82 Oc1.35 d. 2.07 O.0.97 CUISIT THE TOP 37,000 136,500 28.000 201,500 252.000 374.000 327.500 Statement of Financial Position as of December 31, 2018 Cash & equivalents $ 103,000 Accounts payable Receivables 119.500 Notes payable Inventories 92.000 Accrued wages & taxes Total current assets $ 314,500 Total current liabilities Long term debe Net fed assets 513.000 Common equity Total assets 5 827.500 Total liab. & equity Income Statement for 2018 Industry Average Ratios Sales 5 111,000 Current ratio Cost of sales 584.000 Quick ratio Gross profit 5 227,000 Days sales outstanding Operating expenses 143.500 Inventory turnover EBIT $ 83.500 Total asset turnover Interest expense 18.500 Net profit margin Prelax earnings $ 65 000 Return on assets income taxes (25) 16.250 Return on equity Net earnings $ 48.750 Debt-to-capital ratio 1.4 0.9 60 days 5.3 1.3 6.6% 8.4 17.4% 38% Compared to its peers, Smith... a has a higher profit margin b. has a higher return on equity Ochas lower current and quick ratios d.obtainless of its capital from equity financing takes longer to collect its accounts receivable Consider the following inanciar data for Shields Enterprises: Balance Sheet as of December 31, 2019 $ Cash & equivalents Accts, receivable Inventories Total current assets 232,000 223,000 301.000 756.000 $ 102.500 427,500 65.500 595,500 32.000 934.000 1.561.500 Net fixed assets Total assets 5 BOS.500 1.561.500 Income Statement for 2019 Accounts payable 5 Short-term bank note Accruals Total current liabilities $ Long-term debt Common equity Total liab. & equity 5 Industry Average Ratios Current ratio Quick ratio Days sales outstanding Inventory turnover Total asset turnover Net profit margin Return on assets Return on equity Debt-to-capital ratio $ $ Sales revenue Cost of sales Gross profit Operating expenses EBIT Interest expense Pre-tax income Income taxes (35%) Net earnings 1.6 1.1 41 days 7.7 1.5 3.08 4.3% 10.14 1,686,500 1.095.000 590,500 408.000 182,500 33.500 149,000 52150 96.850 $ $ $ Compared to its peers, Shields... a. uses less equity financing b has higher current and quick ratios. oc has a lower profit margin d.generates lower sales per dollar of inventory e has a lower return on equity