The last two years of financial statements for SRC Industries are as follows: SRC Industries ~ Balance Sheets, June 30, 2022 and 2021 2021 2022 Cash $ 15, 250 $22,650 Accounts Receivable 17,625 1,800 Inventory 37,250 48,150 Total current assets $70,125 $72,600 Land $27,000 $30,800 Building and equipment 88,500 122,000 Less: Accumulated depreciation $(30,000) $(40,400) Total fixed assets 85,500 112,400 Total assets $155,625 $185,000 Accounts payable $15,125 $30,600 Short-term bank notes 25,250 60,100 Total current liabilities $40,375 $90,700 Long term debt $33,938 $27,835 Total liabilities $74,313 $118,535 Common stock 44,875 45,950 Retained earnings 36,437 20,515 Total common stockholders equity $81,312 $66,465 Total debt and stockholders equity $155,625 $185,000 SRC Industries ~ Income Statements for the years ended June 30, 2022 and 2021 2021 2022 Sales (all credit) $198,587 $255,000 Cost of goods sold (100,500) (110,000) Gross Profit $98,087 $145,000 Operating expenses: Fixed cash operating expenses $(18,500) $(22,500) Variable operating expenses (9,750) (12,000) Depreciation expense (5,750) (9,000) Total operating expenses $(34,000) $(117,500) Earnings before interest and taxes $64,087 $101,500 Interest expense (15,719) (10,094) Earnings before taxes $48,368 $91,406 Income taxes (14,510.4) (27,421.8) Net income $33,857.6 $63,984.2 Ratios Industry Benchmark (Average) Current ratio 2:1 Receivable turnover 8 to 10 times Average age of receivables 40 days Inventory Turnover 10 times Debt to-equity ratio 1.5:2 Net working capital Positive Return on assets 7.95% Return on equity 9.05% Required: Calculate the following ratios and compare your results with industry benchmark stated above: (2.5 marks each) a) Current ratio: Current assets/Current liabilities b) Receivable turnover: Total Credit Sales / Average Accounts Receivable c) Average age of receivables: (Accounts Receivable * 365) / Sales Revenue d) Inventory Turnover: Sales / Inventory e) Debt to-equity ratio: Total Debts / Total Equity f) Net working capital: Current Assets Current Liability g) Return on assets: Net Income / Average Total Assets h) Return on equity: Net Income / Average Shareholders