The following are financial statements for Fantastic Floss, Inc. for the current year. Also included is a balance sheet for the prior year. Fantastic Floss Income Statement Current Year Revenue (sales) $ 120,000 Cost of Goods Sold 70,000 Gross Profit 50,000 Rent Expense 5,000 Wages Expense 20,000 Depreciation Expense 15,000 Net income $ 10,000 Fantastic Floss Retained earnings Statement Beginning Retained Earnings Add Net Income Less Dividends Paid Ending Retained Earnings Current Year 65,000 10,000 (3,000) 72,000 Balance Sheet Current Year Prior Year Assets Cash Accounts Receivable Inventory Factory Machines Less Accumulated Depreciation Computers Less Accumulated Depreciation Land Total Assets $ $ $ $ $ $ $ $ $ 12,300 $ 8,900 29,400 $ 25,300 35,600 $ 30,100 50,500 $ 45,500 (25,000) $ (15,000) 20,000 $ 17,900 (11,800) $ (6,800) 45,000 $ 45,000 156,000 $ 150,900 Liabilities Accounts Payable Taxes Payable Long-Term Bonds Payable Total Liabilities $ $ $ $ 11,200 $ 13,700 800 $ 2,200 42,000 $50,000 54,000 $ 65,900 Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ $ $ $ 30,000 $ 20,000 72,000 $ 65,000 102,000 $ 85,000 156,000 $ 150,900 3b) Calculate the following ratios for Fantastic Floss, Inc for the current year. Compare each ratio to the floss industry standard, and explain what the ratio in indicating. a) Gross Margin Ratio Industry standard: 60% b) Working Capital Industry standard - $40,000 c) Current Ratio Industry standard : 3.2 d) Inventory Turnover - Calculate the number of days in Inventory Industry Standard - 120 Days