Use the following information to answer the question on page 2 below:

Note: all sales are credit sales.

Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and was "good" or "bad" compared to the Industry Avg in 2018 (round all numbers to 2 digits past the decimal place)

*Assume a 360 day year

**Inventory Turnover can be computed 2 different ways. Use the formula listed in the text and by Connect (the one the text indicates many credit reporting agencies generally use)

Income Stmt info: less Cost of Goods Sold: Gross Profit Operating Expenses Earnings before Interest & Taxes Interest exp earnings before Taxes Taxes Net Income $ Balance Sheet info: Cash Accounts Receivable Inventory Sales $ Total Current Assets Fixed Assets (Net) Total Assets Current Liabilities Long Term Liabilities Total Liabilities Stockholder's Equity Total Liab & Equity: $ en les es $ $ $ $ $ $ $ 2017 1,000,000 400,000 600,000 350,000 250,000 25,000 225,000 90,000 135,000 12/31/2017 2018 $ 1,100,000 424,000 676,000 $ 25,000 $ 50,000 $ 125,000 $ 200,000 $ 300,000 $ 500,000 110,000 $ 180,000 $ 290,000 $ 210,000 500,000 $ $ 365,750 310,250 25,500 284,750 113,900 170,850 12/31/2018 30,000 51,000 131,250 212,250 315,000 527,250 121,000 188,000 309,000 218,250 527,250 Profit Margin Current Ratio Quick Ratio Return on Assets Debt to Assets Receivables turnover Avg. collection period* Inventory Turnover** Return on Equity Times Interest Earned 2017 2018 Getting Better or Getting Worse? 2018 Industry Avg 0.11 1.90 0.66 .28 .50 18.00 15.50 9.25 0.55 11.15 "Good" or "Bad" compared to Industry Avg