Please provide step by step explanation for answer.

BUSI 320 Comprehensive Problem 1 Version FALL Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: Sales $ less Cost of Goods Sold: Gross Profit Operating Expenses Earnings before Interest & Taxes Interest exp earnings before Taxes Taxes Net Income $ 2019 800,000 $ 220.000 580,000 480.000 100,000 25,000 75,000 25.000 50,000 $ 2020 880,000 240.000 640,000 505.000 135,000 25.000 110,000 30.000 80,000 Balance Sheet info: Cash Accounts Receivable Inventory Total Current Assets Fixed Assets (Net) Total Assets 12/31/19 60,000 $ 90,000 $ 110.000 $ 260,000 $ 300.000 $ 560,000 $ 12/31/20 65,000 95,000 130.000 290,000 330.000 620,000 $ S $ Current Liabilities Long Term Liabilities Total Liabilities Stockholder's Equity Total Liab & Equity: $ $ $ 130,000 $ 170.000 S 300,000 $ 260.000 S 560.000 140,000 200.000 340,000 280,000 620.000 S S Compute each of the following ratios for 2019 and 2020 and indicate whether each ratio was getting "better" or "worse" from 2019 to 2020 and whether the 2020 ratio was "good" or "bad" compared to the Industry Avg (round all numbers to 2 digits past the decimal place) Getting Better or Getting Worse? "Good" or "Bad" 2020 compared Industry to Industry Avg Avg 0.08 2019 2020 Profit Mangin zoom Sheet1 Sheet2 Sheet3 Inventory Total Current Assets Fixed Assets (Net) Total Assets $ $ 110.000 $ 260,000 $ 300,000 $ 560,000 $ 130.000 290,000 330.000 S 620.000 $ $ $ Current Liabilities Long Term Liabilities Total Liabilities Stockholder's Equity Total Liab & Equity: 130,000 $ 170.000 $ 300,000 $ 260.000 S 560,000 $ 140,000 200.000 340,000 280.000 620,000 S $ Compute each of the following ratios for 2019 and 2020 and indicate whether each ratio was getting "better" or "worse" from 2019 to 2020 and whether the 2020 ratio was "good" or "bad" compared to the Industry Avg (round all numbers to 2 digits past the decimal place) Getting Better or Getting Worse? 2019 2020 Profit Margin Current Ratio Quick Ratio Return on Assets Debt to Assets Receivables turnover Avg. collection period Inventory Turnover** Return on Equity Times Interest Earned "Good" or "Bad" 2020 compared Industry to Industry Avg Avg 0.08 1.80 1.12 0.18 0.60 12.00 22.10 8.25 0.16 8.15 Assume a 360 day year **Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use)