Use the attached Income Statement and Balance Sheet to compute the required financial ratios for Seward Inc. and compare to the industry averages. After that, write a brief summary as to what each ratio is measuring and how Seward compares to the industry. For example, you may find that Seward's Inventory Turnover is not as high as the industry average, so they are either not managing their inventories or may be experiencing a decrease in sales. You can plact the ratios and summary right in Excel, and then upload that file here.

Seward Industries
INCOME STATEMENT
Sales	$ 4,500
COGS	(2,800)
Gross Profit	1,700
Operating Expenses:
S,G,&A	(1,000)
Depreciation Expense	(200)
Total Operating Expenses	(1,200)
Operating Profits	500
Interest Expense	(60)
EBT	440
Income Taxes	(125)
Net Income	315
BALANCE SHEET
Cash	$ 500
Accounts Receivables	600
Inventories	900
Total Current Assets	2,000
Gross Fixed Assets	2,100
Accumulated Depreciation	(800)
Net Fixed Assets	1,300
Total Assets	3,300
Liabilities & Equity
Accounts Payable	500
Short Term Notes	300
Total Current Liabilities	800
Long Term Debt	400
Total Liabilities	1,200
Common Equity:
Common Stock	500
Retained Earnings	1,600
Total Common Equity	2,100
Total Liabilities and Equity	3,300

a. Compute the ratios listed below for Seward and compare to the industry averages. Provide an explaination for how well you think Seward is performing as compared to others in the industry.

Current ratio

Days in receivables

Days in inventory

Net return on assets (ROA)

Operating profit margin

Total Debt to Assets

Times interest earned

Return on Equity

INDUSTRY AVERAGES

Current ratio 3.0

Days in receivables 40.0

Days in inventory 70.2

Net return on assets (ROA) 12.5%

Operating profit margin 8.0%

Total Debt to Assets 33%

Times interest earned 6.0

Return on Equity 11.0%