please help me with question 1

Ratios and Financial Planning at S&S Air, Inc. partial payment before the order is complete. In con trast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed. Mark and Todd have provided the following finan cial statements. Chris hos gathered the industry ratios for the light airplane manufacturing Industry hris assist the company with its financial planning and to evaluate the company's performance. Chris graduated from college five years ago with a finance degree. He has been employed in the finance department of a For tune 500 company since then. S&S Ar was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the com- pany's products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models: the Birdie which sells for $53,000, and the Eagle, which sells for $78,000 While the company manufactures aircraft, its opera tions are different from commercial aircraft companies S&S Alr bullds alrcraft to order. By using prefabricated parts, the company is able to complete the manufacture of an airplane in only five weeks. The company also celves depout on each order as well as another SAS AIR, INC 2019 Income Statement Sales $26.501.600 Cost of goods sold 19,780,200 Other expenses 3.166,700 Depreciation 864.500 $ 2,690,200 Interest 479.200 Taxable income $ 2.211.000 Taxes (211 464,310 Net Income $ 1.746,690 Dividends $270,000 Addition to retained 1.470.000 eaming EBIT S&S AIR, INC 2019 Balance Sheet Assets Liabilities and uity Current assets Current liabilities Cash $481852 Accounts payable $ 044,690 Accounts receivable 2.025,778 Notes payable 1.009.248 Inventory 1634820 Total current liabilities $ 2,853.946 Total currents 5 4.142.450 Long term debt $ 5.000.000 Net plant and 516 256,638 Shareholder equity equipment Common stock $ 190,000 Retained earnings 12,295,202 Total quity $12.405,202 Totalsts $20.309.148 Totalities and equity $20.399 160 Light Airplane Industry Ratios Lower Quartile Median Upper Quartile Current ratio Quick ratio Cash ratio Total asset turnover Inventory turnover Receivables turnover Total debt ratio Debt-equity ratio Equity multiplier Times interest earned Cash coverage ratio Profit margin Return on assets Return on equity 50 .64 .08 .68 4.89 6.27 .31 .58 1.58 5.18 5.84 4.05% 6.05% 9.93% 1.43 .84 .21 .85 6.15 9.82 52 1.08 2.08 8.06 8.43 6.75% 10.53% 16.54% 1.89 1.05 39 1.13 10.89 11.51 .61 1.56 2.56 9.83 10.27 8.47% 13.21% 26,15% QUESTIONS 1. Calculate the ratios for S&S Air that are shown for the industry, 2. Mark and Todd agree that a ratio analysis can pro- vide a measure of the company' performance. They have chosen Boeing as an aspirant com- pany. Would you choose Boeing as an aspirant company? Why or why not? 3. Compare the performance of S&S Air to the indus- try. For each ratio, comment on why it might be viewed as positive or negative relative to the in- dustry. Suppose you create an inventory ratio cal- culated by Inventory divided by current liabilities. How do you think s&s Air's ratio would compare to the industry average? and sustainable growth rate-for 585 in Word these mise