The following is the income statement for the year ended October 31, 2019 and the balance sheet as of October 31, 2019 for M & K Design Limited. Also included is some additional information to assist you in your calculations and analysis:

M & K Design Limited Income Statement For Year Ended October 31, 2019 Sales $1,700,000 Cost of goods sold 884,000 816,000 Depreciation expense 65,000 Operating expenses 527,700 223,300 Interest expense 8,000 Income before tax 215,300 Income tax expense 30,000 $185.300M & K Design Limited Balance Sheet October 31, 2019 Assets Cash $22,000 Accounts receivable 122,000 Inventory 96,000 240,000 Furniture and Equipment 700,000 Accumulated depreciation - furniture and equipment (300,000) Long term investment 125,500 525,500 $765,500 Liabilities & Shareholder's Equity Liabilities Accounts payable $158,000 Salary payable 12,000 Income tax payable 30,000 200,000 Bank loan (long-term) 75,000 275,000 Shareholder's Equity Common shares 50,000 Retained earnings 440,500 490,500 $765,500Selected data from October 31, 2018 financial statements: Total assets $683,500 Accounts receivable $107,500 Inventory $ 60,000 Accounts payable $175,000The following information is available for: Industry averages - M & K Design 2019 2018 Gross profit margin ratio 50.0% 47.2% Return on sales (net profit margin) 9% 9.5% Rate of return on assets .25 .24 Debt ratio .40 .48 Current ratio 1.5 1.0 Asset turnover 2.1 2.0 Quick Ratio 75 671. Gross profit margin ratio Gross profit Net sales 2. Return on sales (Net profit Net income margin ratio) Net sales 3. Rate of return on assets Net income ratio Average total assets 4. Asset turnover ratio Net sales Average total assets Net sales 5 &6. Receivables turnover Average accounts receivable ratio and days sales and outstanding 365 Accounts receivable turnover Cost of goods sold 7 & 8. Inventory turnover Average inventory ratio and days inventory and outstanding 365 Inventory turnover ratio Cost of goods sold 9 & 10. Payables turnover Average accounts payable and days payables and outstanding 365 Accounts payable turnover 11. Cash conversion cycle Days inventory outstanding +days sales outstanding - days payables outstanding 12. Current ratio Current assets Current liabilities 13. Quick ratio Cash + short-term investments + current receivables Current liabilities 14. Debt ratio Total liabilities Total assets 15. Times interest earned Income from operations Interest expense