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.

Seward Industries 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. 4,500 (2,800) 1,700 INCOME STATEMENT Sales COGS Gross Profit Operating Expenses: S,G,&A Depreciation Expense Total Operating Expenses Operating profits Interest Expense EBT Income Taxes Net Income (1,000) (200) (1,200) 500 (60) 440 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 (125) 315 3.0 40.0 70.2 12.5% 8.0% 33% BALANCE SHEET Cash Accounts Receivables Inventories Total Current Assets Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets INDUSTRY AVERAGES 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 500 600 900 2,000 2,100 (800) 1,300 3,300 6.0 11.0% Liabilities & Equity Accounts Payable Short Term Notes Total Current Liabilities Long Term Debt Total Liabilities Common Equity: Common Stock Retained Earnings Total Common Equity Total Liabilities and Equity 500 300 800 400 1,200 500 1,600 2,100 3,300