Use the preceding financial statements to complete the following table. Assume the industry averages given in the table are applicable for both 2011 and 2012. Compute: 1) actual 2012 ratios; 2) state whether 2012 ratios is better or worse than the industry average; and 3) state whether 2012 ratios is better or worse than the actual 2011 ratios (24points) Industry average Actual 2011 Actual 2012 1.80 1.84 1.04 Ratio Current ratio Quick ratio Inventory turnover Average collection period (a) 0.70 0.78 0.38 2.50 2.59 2.33 37.5 days 36.5 days 57.03 days_ (a) Based on a 365-day year and on end-of-year figures. Note: Assume all of the company's sales are on credit Compute the 2012 ratios and put the answers on the space provided in the table. Show solutions. No solutions, no points (2rts each ratio = total - 8points) (Current Ratio) (Quick Ratio) 72,000/69,000 (500 + 1,000 + 25,000)/69,000 = 1.04 26,500/69,000 = 0.38 (Inventory Turnover) (Average Collection Period) 106,000/45,500 365/6.4 (Receivables Turnover) = 2.33 = 57.03 days State whether each of the 2012 ratios you computed are better or worse than the industry averages. Explain your answers. (8 points) State whether each of the 2012 ratios you computed are better or worse than the 2011 ratios. Explain your answers. (8 points)