Someone was recently hired by Snapit company to assist the company with its financial planning and to evaluate the companys performance

Using the financial statements provided, calculate each of the ratios listed in the table

Compare the performance of Snapit to the industry

Comment whether each ratio is good or bad

Industry Average	Snapit Company	Good or Bad?
Current Ratio =1.43X
Quick Ratio =0.35X
Receivable Turnover =9.82X
Inventory Turnover = 6.15X
Total Asset Turnover = 0.85 X
Fixed Asset Turnover = 1.20X
Profit Margin =4.5%
Return on Assets =6.05%
Return on Equities = 9.93%
Total Debt Ratio =0.52X
Debt to Equity Ratio =1.08X
Times Interest Earned =8.06X

Overall Assessment:

Snapit Company Income Statement (2009) Sales $4,000,000 Cost of goods sold 3,040,000 Gross profit | 960,000 Selling and administrative expenses 430000 Operating profit 530,000 Interest expense 160,000 Income before tax 370,000 Tax expense 148.000 Net income $222,000 Balance Sheet Cash Accounts receivable Inventory Total current assets Fixed assets 2009 2008 $60,000 $50,000 550,000 500,000 690,000 620,000 1,300,000 1,170,000 1,300,000 1,230,000 2,600,000 2,400,000 Total assets Accounts payable Bank loan Total current liabilities Bonds payable Total liabilities Common stock (25,000 shares) Retained earnings Total liabilities & equity 270,000 250,000 580,000 500,000 850,000 750,000 900,000 1,000,000 1,750,000 1,750,000 250,000 250,000 600,000 400,000 $2,600,000 $2,400,000 Note: The common shares are trading in the stock market for $100 | each