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Please refer to attachment. Thank you for your help. Assignment 1-3 Worksheet Part I: A. Calculate the following ratios for East Coast Yachts and compare

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Assignment 1-3 Worksheet Part I: A. Calculate the following ratios for East Coast Yachts and compare them to those for the industry: Liquidity or Short-Term Solvency Ratios Calculate and compare to industry ratios: East Coast Yacht s Lower Quart ile Median Upper Quart ile Current Ratio 0.86 1.51 1.97 Quick Ratio 0.43 0.75 Positive, Negative, or Neutral Relative to Industry 1.01 Asset Management or Turnover Ratios Calculate and compare to industry ratios: East Coast Yacht s Assets Turnov er Inventory Turnov er Receivables Turnov er Lower Quart ile Median Upper Quart ile 1.10 1.27 1.46 12.18 14.38 16.43 10.25 17.65 22.43 Positive, Negative, or Neutral Relative to Industry Long-Term Solvency Ratios Calculate and compare to industry ratios: East Coast Yacht s Debt Ratio Debt-Equity Ratio Equity Multipl ier Interest Covera ge Lower Quart ile Median Upper Quart ile 0.32 0.51 0.47 0.83 0.61 1.03 1.51 1.83 2.03 5.72 8.21 Positive, Negative, or Neutral Relative to Industry 10.83 Profitability Measures Calculate and compare to industry ratios: East Coast Yacht s Profit Margin Return on Assets Return on Equity Lower Quart ile Median Upper Quart ile 5.02% 7.05% 7.48% 10.67% 9.05% 14.16% 9.06% 14.32% Positive, Negative, or Neutral Relative to Industry 20.83% B. Based on your calculations and comparisons above, how would you characterize East Coast Yacht's performance relative to its industry? Part II: Please answer the following questions: A. Assuming East Coast Yachts maintains a constant retention ratio, i. Calculate the firm's internal growth rate: ________ ii. In words, what does this rate mean? iii. Calculate the firm's sustainable growth rate: iv. In words, what does this rate mean? ________

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