There are 3 questions in total. I know how to calculate number 1 and 2 but I am not sure number 3. I don't know should I compare my answer with the industry table ratio. Could you please help me to solve this problem? This is due on Monday so I would greatly appreciated if you could return this before Monday! Thank you

Excel File Edit View Insert Format Tools Data Window Help DO Sat 12:24 PM Q AutoSave OFF HE Dropbox 2-5 Worksheet (S&S Air) - Saved to my Mac Search Sheet Home Insert Page Layout Formulas Data Review View Share K Cut A- A E Wrap Text General _ AutoSum Arial 12 Copy Fill Paste E EE Merge & Center $ ~ % " 00 $.0 Conditional Format Cell Insert Delete Format Format Formatting as Table Clear Sort & Styles Filter 33 X fx S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the company's products have received high reviews for safety A B C G H J K M N O Q R S + Chris Guthrie was recently hired by S&S Air, Inc., to asset the company with its financial planning and to evaluate the company's performance. Chris graduated from 2019 Income Statement college five years ago with a finance degree. He has been employed in the finance department of a Fortune 500 company since then. Sales $ 40,259,230 COGS 29,336,446 S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the Other expenses 5,105,100 company's products have received high reviews for safety and reliability. The company has a niche market in that is sells primarily to individuals who own and fly Depreciation ,804,220 their own airplanes. The company has two models: the Birdie, which sells for $103,000, and the Eagle, which sells for $178,000. EBIT 4,013,464 Interest 630,520 Taxable income 3,382,944 |Although the company manufactures aircraft, its operations are different from commercial aircraft companies. S&S Air builds aircraft to order. By using prefabricated Taxes (40%) 1.353,178 parts, the company can complete the manufacture of an airplane in only five weeks. The company also receives a deposit on each order, as well as another partial Net income 2,029,766 payment before the order is complete. In contast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed. Dividends 610,000 Add to RE 1,419,766 Mark and Todd have provided financial statements (which are to the left and below). In addition, Chris has gathered the industry ratios for the light airplance manufacturing industry (below) 2019 Balance Sheet Industry Lower Quartile Median Upper Quartile Assets Liabilities & Equity Current ratio 0.50 1.43 1.89 Current Assets Current Liabilities Quick ratio 0.21 0.35 0.62 Cas $ 456,435 Accounts Payable $ 929,005 Cash ratio 0.08 0.21 0.39 Accounts rec. 733,125 Notes Payable 2,121,350 Total asset turnover 0.68 0.85 1.38 Inventory ,073,180 Total CL $ 3,050,355 Inventory turnover 4.89 6.15 10.89 Total CA $ 2,262,740 Receivables turnover 6.27 9.82 14.1 Long-term debt 5,500,000 Total debt ratio 0.44 0.52 0.61 Debt-equity ratio 0.68 1.08 1.56 Shareholder Equity Equity multiplier 1.68 2.08 2.56 Fixed assets Common stock $ 400,000 Times interest earned 5.18 8.06 9.83 Net PP&E $ 17,723,430 Retained earnings 11,035,815 Cash coverage ratio 5.84 9.41 10.27 Total Equity $ 11,435,815 Profit margin 4.05% 7.15% Return on assets 6.05% 10.53% 13.21% Total Assets $ 19,986,170 Total L&E 19,986,170 Return on equity 9.93% 18.14% 26.15% S&S Air + Ready + 100% SEP 2 5 X A OExcel File Edit View Insert Format Tools Data Window Help DO Sat 12:24 PM Q AutoSave OFF HE Dropbox 2-5 Worksheet (S&S Air) - Saved to my Mac Search Sheet Home Insert Page Layout Formulas Data Review View Share K Cut Bo Wrap Text _ AutoSum Arial 12 A- A General L Copy Fill Paste E EE Merge & Center $ % " 100 #.0 Conditional Format Cell Insert Delete Format Sort & Format Formatting as Table Styles Clear Filter FS X V fx S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the company's products have received high reviews for safety A B C D E F G H J K M N P Q R Dividends Add to RE EA EA 610,000 1,419,766 Mark and Todd have provided financial statements (which are to the left and below). In addition, Chris has gathered the industry ratios for the light airplance manufacturing industry (below). 2019 Balance Sheet Industry Lower Quartile Median Upper Quartile Assets Liabilities & Equity Current ratio 0.50 1.43 1.89 Current Assets Current Liabilities Quick ratio 0.21 0.35 0.62 Cash $ 456,435 Accounts Payable $ 929,005 Cash ratio 0.08 0.21 0.39 Accounts rec. 733,125 Notes Payable 2,121,350 Total asset turnover 0.68 0.85 1.38 Inventory 1,073,180 Total CL $ 3,050,355 nventory turnover 4.89 6.15 10.89 Total CA 2,262,740 Receivables turnover 6.27 9.82 14.11 Long-term debt $ 5,500,000 Total debt ratio 0.44 0.52 0.61 Debt-equity ratio 0.68 1.08 1.56 Shareholder Equity Equity multiplie 1.68 2.08 2.56 Fixed assets Common stock 400,000 Times interest earned 5.18 8.06 9.83 Net PP&E $ 17,723,430 Retained earnings 11,035,815 Cash coverage ratio 5.84 9.41 10.27 Total Equity $ 11,435,815 Profit margin 4.05% 5.10% 7.15% Return on assets 6.05% 10.53% 13.21% Total Assets $ 19,986,170 Total L&E 19,986,170 Return on equity 9.93% 18.14% 26.15% Questions: 1. Using the financial statements provided above, calculate each of the ratios listed in the industry table for S&S Air (all 14 of them). 2. Mark and Todd agree a ratio analysis can provide a measure of the company's performance. They have chosen Boeing as an aspirant (comparison) company. Would you choose Boeing as an aspirant company? Why or why not? There are other aircraft manufacturers S&S Air could use as aspirant companies. Discuss whether it is appropriate to use any of the following companies: Bombadier, Embraer, Cirrus Aircraft Corporation, and Cessna Aircraft Company. 3. Compare the performance of S&S Air to the industry, using the 14 ratios you calculated in part 1 and the industry table provided. For each ratio, comment on whether it would be viewed as positive or negative (favorable or unfavorable) to the industry and why. Create your Original Solution Below - Be sure to show all calculations, to carefully complete all parts of the assignment, and to clearly indicate answers (create additional worksheets to organize your work if necessary) I Current ratio 0 741795627 S&S Air Ready + 100% SEP 2 5