The following information has been provided in Appendix C:

Actual ratios for Sterling Company for 2017 and 2018

Industry averages for 2019 ratios

2019 Income Statement for Sterling Company

2019 Balance Sheet for Sterling Company

Required:

(Note: round all final answers to 2 decimal places)

1) Identify and calculate ONE ratio for 2019 that is classified as a Debt Utilization Ratio.

2) Interpret the ratio that you have calculated in requirement 1) above.

3) For the ratio you have calculated in requirement 1) above, provide an evaluation of

Sterling Companys performance compared to the Industry Average.

4) Identify and calculate the ratio for 2019 that measures the number of times the company

completed its purchase hold sale cycle.

5) For the ratio calculated in requirement 4) above, identify the major ratio category in

which it would be classified.

6) Calculate Accounts Payable Period for 2019.

7) For the ratio calculated in requirement 6) above, evaluate the trend for Sterling

Company.

8) Identify and calculate the ratio for 2019 that measures the return being generated on

funds invested by owners.