Thank you!

1. Summarize the information from the 3 years financial statements, the ratio calculations, and industry comparisons provided in the case to present possible solutions to the company's profitability problems. Be sure to conclude with projecting the future success of the company based on your findings.

2. Summary of Luna profitability, including solutions to profitability problems, is thorough and includes substantial explanation and relevant supporting details.

3. Discussion of the future performance of the company is thorough and includes substantial explanation and relevant supporting details.

4. Professional memo format elements are correct and contains no errors.

The Luna profitability date is below

				Industry Averages
	2016	2015	2014	2026
Current	2.3X	2.3X	2.2x	2.1x
Average collection period	45 days	46 days	47 days	50 days
Inventory turnover	8.3X	8.2X	8.1X	8.3X
Fixed asset turnover	2.7X	3.0X	3.3X	3.5X
Total asset turnover	1.1X	1.2X	1.3X	1.5X
Debt ratio	50%	50%	5.0%	54%
Times interest earned	8.1X	8.2X	8.1X	7.2X
Fixed charge coverage	4.0X	4.5X	5.5X	5.1x
Gross profit margin	43%	43%	43%	40%
Operating profit margin	6.3%	7.2%	8.0%	7.5%
Net profit margin	3.5%	4.0%	4.3%	4.2%
Return on assets	3.7%	5.0%	5.7%	6.4%
Return on equity	7.4%	9.9%	11.4%	11.8%