The Ferri Furniture Company, a manufacturer and wholesaler of high-quality home furnishings, has been experiencing low profitability in recent years. As a result, the board of directors has replaced the president of the firm with a new president, Helen Adams who has asked you to make an analysis of the firm's financial position. Ferri's financial statements, are as follows: Ferri Furniture Company: Balance Sheet as of December 31, 2020 (Millions of Dollars). Ferri Furniture Company: Income Statement for Year Ended December 31, 2016 (Millions of Dollars)

Cash Marketable Securities Net receivables Inventories Total current Assets 45 33 66 159 303 45 45 21 Account Payable Notes Payable Other current liabilities Total current liabilities Long term debt Total liabilities 111 24 135 Fixed assets Less depreciation Net Fixed assets 225 78 147 Common Stock 114 Retained Earnings 201 Total Stockholder's equity 315 Total liabilities and equity 450 Total Assets $450 Net Sales Cost of Goods sold Gross Profit Selling expenses EBITDA Depreciation expense EBIT Interest expense Earnings before taxes Taxes (40%) Net Income 795.0 (660.0) 135.0 (73.5) 61.5 (12.0) 49.5 (4.5) 45.0 (18.0) 27.0 Industry Average Ratios 1) 2) 3) 4) 5) 6) 7) 8) 9) 9) Current ratio Debt to asset Interest Coverage (TIE) EBITDA Coverage Inventory Turnover DSO Total Asset Turnover Fixed Asset Turnover ROE ROA Profit margin 2x 30% 7x 9x 10x 24 days = 11 3 6x 12.9% 9% 3% 10) 11 Required: Calculate the ratios of Ferri Furniture Company and compare them with industry averages