Please review the Mahogany Products Inc. ratios provided with Problem 8-35 on page 242 in your Arens, Elder, and Beasley textbook. Analyze the financial condition of Mahogany Products Inc., first through comparison of the year-over-year ratios, and then versus the industry ratios provided. Please state whether there is a need to investigate the results further, and if so, the reason for further investigation. Commenting on each ratio is the best way to answer this question.

Industry Averages 2011 Mahogany Products 2010 3.80 93.00 121.00 11.60 .51 06 06 27 $13.91 2011 Ratio 1. Current ratio 2. Days to collect receivables 3. Days to sell inventory 4. Purchases divided by accounts payable 5. Inventory divided by current assets 6. Operating income divided by tangible assets 7. Operating income divided by net sales 8. Gross profit percent 9. Earnings per share 2010 3.30 87.00 126.00 11.70 .56 08 06 .21 $14.27 2.20 67.00 93.00 8.50 49 .14 04 .21 $2.09 2.60 60.00 89.00 8.60 48 .12 04 .19 $1.93