The Year 2 income statement of Company A reports sales of $18,270,000, cost of goods sold of $11,423,500, and net income of $1,670,000. Balance sheet information is provided in the following table.

COMPANY A Balance Sheets December 31, Year 2 and Year 1
	Year 2				Year 1
Assets
Current assets:
Cash	$	670,000			$	830,000
Accounts receivable		1,540,000				1,070,000
Inventory		1,940,000				1,470,000
Long-term assets		4,870,000				4,310,000
Total assets	$	9,020,000			$	7,680,000
Liabilities and Stockholders' Equity
Current liabilities	$	1,950,000			$	1,730,000
Long-term liabilities		2,370,000				2,470,000
Common stock		1,930,000				1,930,000
Retained earnings		2,770,000				1,550,000
Total liabilities and stockholders' equity	$	9,020,000			$	7,680,000

Industry averages for the following four risk ratios are as follows:

Average collection period	25 days
Average days in inventory	60 days
Current ratio	2 to 1
Debt to equity ratio	50%

Required: 1. Calculate the four risk ratios listed above for Company A in Year 2. (Use 365 days in a year. Round your answers to 1 decimal place.)

2. Do you think the company is more risky or less risky than the industry average?

• More risky

• Less risky