The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows:

Balance Sheet ($000) Cash Accounts receivable Inventories Current assets Net xed assets Total assets Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity Income Statement ($000) Net sales (all credit) Cost of goods sold Gross prot Operating expenses (includes $500 depreciation) Operating income Interest expense Earnings before taxes Income taxes (40%) Net income INDUSTRY NORMS Current ratio Inventory turnover Total asset turnover Operating prot margin Operating income return on investment Debt ratio Average collection period Fixed asset turnover Return on equity 15:1 3 x 1x 18% 18% 60% 100 days 1.5 :1 15% 1. Firm Liquidity current ratio = current assets current liabilities average collection period = accounts receivable dailycredit sales 2. Operating Profitability operating income return on investment = operating income total assets operating profit margin = Operating income sales sales total asset turnover = total assets inventory turnover = cost of goods sold inventory fixed assets turnover = sales net fixed assets 3. Financing Decisions debt ratio = total debt total assets 4. Return on common equity return on common equity = net income common equity