VE 1 84% 09:18 Read Only - You can't save changes to t... 2. Given the balance sheet and income state for Simmons Maintenance Company, compute the ratios that are also shown for the industry average. For each ratio, indicate whether Simmons is better or worse than the industry average.. (13.Marks) Assets Cash Acots. Receivable Inventory Current Assets Net Fixed Assets SIMMONS MAINTENANCE COMPANY Balance Sheet Liabilities $ 15,000 Accounts Payable $ 21,000 22,000 Notes Payable 20,000 30.000 Accrued Expenses 5.000 67,000 Current Liabilities 46,000 73.000 Long-term Debt 30,000 Stockholders' Equity 64.000 $140,000 Total Liabilities & Stockholders' Equity $140,000 Total Assets Income Statement Sales (80% credit) Less: Cost of Goods Sold Gross Profit Selling and Administrative Expense Rent Expense (Lease) EBIT Interest Expense Earnings before taxes Taxes (@25%) Net Income Common shares outstanding EPS $120,000 45,000 75,000 20,000 8.000 47,000 5.000 42,000 10.500 $ 31,500 15,000 $ 2.10 5 VI 83% 09:19 Read Only - You can't save changes to t... 5 Ratios for Simmons Industry Average Better (B) or Worse (W) Ratio Profit margin Return on assets Return on equity Receivables turnover Avg. collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned Fixed charge coverage 17.5% 20.8% 35% 4.4x 68.0 days 3.5x 2.4x .76% 1.28 .85 ,45 12.0x 3.6% =