Using the following data for Jackson Products Company, answer Parts a through d:

Jackson Products Companys Balance Sheet December 31, Year 1
Cash	$ 240,000		Accounts payable	$ 390,000
Accounts receivable	320,000		Notes payable (9%)	400,000
Inventory	1,040,000		Other current liabilities	60,000
Total current assets	$1,600,000		Total current liabilities	$ 850,000
Net plant and equipment	800,000		Long-term debt (11%)	800,000
Total assets	$2,400,000		Stockholders equity	750,000
			Total liabilities and stockholders equity	$2,400,000

Income Statement for the Year Ended December 31, Year 1
Net sales (all on credit)		$3,100,000
Cost of sales		1,800,000
Gross profit		$1,300,000
Selling, general, and administrative expenses		860,000
Earnings before interest and taxes		$440,000
Interest:
Notes	$ 36,000
Long-term debt	88,000
Total interest charges		124,000
Earnings before taxes		$316,000
Federal income tax (40%)		126,400
Earnings after taxes		$189,600

Industry Averages
Current ratio	1.8:1
Quick ratio	0.8:1
Average collection period (365-day year)	36.7 days
Inventory turnover ratio	1.9 times
Total asset turnover ratio	1.4 times
Times interest earned ratio	3.7 times
Net profit margin ratio	6.6%
Return on investment ratio	9.2%
Total assets/stockholders equity (equity multiplier) ratio	3.5 times
Return on stockholders equity ratio	32.3%
P/E ratio	9.0 times

Do not round intermediate calculations. Round your answers to two decimal places. Round your answer for net working capital to the nearest dollar.

1. Evaluate the liquidity position of Jackson relative to that of the average firm in the industry. Consider the current ratio, the quick ratio, and the net working capital (current assets minus current liabilities) for Jackson.

   Current ratio of ____ times is (higher/lower) than the industry average.

   Quick ratio of ____ times is (higher/lower) than the industry average.

   Net working capital $____.

2. Evaluate Jacksons performance by looking at key asset management ratios.

   Average collection period of ____ days is (higher/lower) than the industry average.

   Inventory turnover ratio of ____ is (higher/lower) than the industry average.

   Total asset turnover ratio of ____ is (higher/lower) than the industry average.

3. Evaluate the financial risk of Jackson by examining its times interest earned ratio and its equity multiplier ratio relative to the same industry average ratios.

   Times interest earned ratio of ____ times is (higher/lower) than the industry average.

   Equity multiplier of ____ times is (higher/lower) than the industry average.

4. Evaluate the profitability of Jackson relative to that of the average firm in its industry.

   Net profit margin ratio of ____% is (higher/lower) than the industry average.

   Return on stockholders equity of ____% is (higher/lower) than the industry average.

   Return on investment of ____% is (higher/lower) than the industry average.

Please show calculations! Thank you.