Using the 2019 financial statements for TransWorld Corp (in the separate Word file) and the following ratios:

Ratios for last year and Industry Average

	2018	Industry Average
Quick Ratio	0.90	1.1
Days Sales Outstanding	38 days	30 days
Inventory turnover	6.4	7.2
Debt Ratio	0.60	0.55
Return on equity	14%	14%

Quick ratio: Compared to 2018 and Industry Average, how well did the company do in managing its current assets?

Calculate 2019 Days Sales Outstanding:

DSO: Compared to 2018 and Industry Average, how well did the company do in managing its Accounts Receivable?

Calculate 2019 Inventory Turnover:

Inventory Turnover: Compared to 2018 and Industry Average, how well did the company do in managing its inventory?

Calculate 2019 Debt Ratio:

Debt ratio: Compared to 2018 and Industry Average, how well did the company do in managing its debts?

Times New R Data for Online Exam.doc [Compatibility Mode] - Word Yusuf Molapiya YM o File Home Insert Draw Design Taynut References Mailing Review View Help Quillot Tell me what you want to do 9. Share X out Times New Romar. 12 A - - Aa A . EL = = = = = Format Painter Clinboard AaBtC AaBbc AaBbc AaBbce Aslbcd AaBbcc AaBbc AaBbce daBbc Emphasis Heading 1 1 Heading 2 Normal Strong Subtitle Title 1 1 No Spac.. Subtle Em... Paste BTU - X: x A. Fird - Replace Select Editing Font PI Paragraph TransWorld Corp. Balance Sheet and Income Statement for the 2019 year: Balance Sheet (Thousands of $) S) Cash Accounts receivable Inventories Total current assets $5,000 12,000 13,000 S30,000 Accounts payable Notes payable Accruals Total current liabilities Bonds payable Common stock Retained earnings Total liabilities and equity $ 2.000 19,000 1.000 $22.000 15,000 2,000 11.000 $50.000 Net plant and equipment Total assets 20,000 $50.000 Income Statement (Thousands of S) Nel sales Cost of Goods Sold Operating costs except depreciation Depreciation - Earnings before interest and taxes Less: interest Earnings before taxes Taxes (35%) $87.500 60.000 21,813 1.531 $4.156 1.375 $ 2,781 973 Net income $1,808 Page 1 of 1 110 words LE Engish (Unted States Accessibility: Unavailable . + 100% % ENG US 4x) 1:48 PM 2021-11-09