QUESTION 14 Consider the following financial data for Terry Enterprises Balance Sheet as of December 31, 2018 $ Cash Accts, receivable Inventories Total current assets $ 86,000 91,500 65.500 243,000 $ $ Net plant & equip. Total assets 15,500 93,500 19.500 128,500 162.500 371,500 662.500 $ 419.500 662.500 Statement of Earnings for 2018 Accounts payable Notes payable Accruals Total current liabilities Long-term debt Common equity Total liab. & equity 5 Industry Average Ratios Current ratio Quick ratio Days sales outstanding Inventory turnover Total asset turnover $ 2.2 Net sales Cost of goods sold Gross profit Operating expenses EBIT $ 642.500 482.000 160,500 119.500 41,000 1.7 44 days $ 6.7 0.6 Click Save and Submit to save and submit. Click Save All Answers to save all answers Statement of Earnings for 2018 Industry Average Ratios $ s Net sales Cost of goods sold Gross profit Operating expenses EBIT Interest expense Pre-tax earnings Income taxes (35%) Net profit 5 642,500 482.000 160,500 119.500 41,000 14.500 26.500 9.275 17.225 Current ratio Quick ratio Days sales outstanding Inventory turnover Total asset turnover Net profit margin Return on assets Return on equity Debt-to-capital ratio 2.2 1.7 44 days 6.7 0.6 7.296 4,496 7.7% 3196 $ $ Compared to other firms in the same industry, Terry... a. has a higher profit margin. b. generates less profit per dollar of total assets, c. is better able to meet its short-term obligations d. has a shorter average collection period for receivables. e obtains more of its capital from equity financing