Problem 5.6 Luna is having difficulty improving profitability, using the ratios below Luna Lighting 2013 2.3 45 8.3 2.7 2012 2.3 45 8.2 3 3.3 1.1 1.2 50.0% Industry Avg. 2011 2013 2.2 2.1 471 50 8.1 8.3 3.5 1.3 1.5 50.0% 54.0% 8.1 7.2 5.5 5.1 43.0% 40.0% 8.0% 7.5% 4.3% 4.29 5.7% 6.4% 11.4% 11.89 Current Average collection period Inventory turnover Fixed asset turnover Total asset turnover Debt ratio Times interest earned Fixed charge coverage Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity 8.1 50.0% 8.2 4.5 43.0% 7.2% 4.0% 5.0% 9.9% 4 43.0% 6.3% 3.5% 5.7% 7.4% N, suggest reasons for this problem Explanation