The following information is available for Abu Company Limited for the year ended May 31, 2021:

Abu Company Limited
Income Statement
For the Year Ended May 31, 2021
Sales	$888,900
Cost of goods sold	446,200
	442,700
Amortization expense	48,000
Operating expenses	316,800
Total operating expenses	364,800
	77,900
Interest expense	12,500
	65,400
Income taxes	13,080
	$52,320

	Abu Company Limited
	Balance Sheet
	May 31, 2021
			Liabilities
Assets			Accounts payable	$108,900
	Cash	$48,250	Wages payable	4,200
	Accounts receivable	122,500	Taxes payable	13,080
	Inventory	99,780		126,180
		270,530	Long term note payable	88,000
Long term investments		20,000
Property, plant & equipment		250,000		214,180
Less Accumulated depreciation		(75,000)
		195,000	Shareholders equity
			Common shares	120,000
		$465,530	Retained earnings	131,350
				251,350
				$465,530

Additional information:

- All sales were credit sales and normal terms are net 30 days from date of invoice.

- The companys accounts receivable at May 31, 2020 were $102,600.

- The inventory at May 31, 2020 was $79,800.

- The total assets at May 31, 2020 were $364,900.

- Shareholders equity was $241,620 at May 31, 2020.

- Total shares outstanding at May 31, 2020 & May 31, 2021 were 12,000.

- The market price per share is $60.

Required:

1. Calculate any 12 ratios from the list of ratios provided in Moodle & discussed in class.

2. Choose 4 of the ratios calculated in Part 1 & discuss. Limited industry averages & prior year ratios are listed below to assist you in your analysis.

	Industry averages -2021	Abu Company Limited May 31, 2020
Gross profit margin ratio	47.0%	51%
Return on sales (net profit margin)	5%	6.5%
Times interest earned	8	10
Debt ratio	.55	.42
# of days sales in inventory	60 days	65 days
Current ratio	1.5	2.6
Quick Ratio	1.15	1.62