VIU: Ratio Analysis (Week 12) The following information is an extract from MNM Ltd's financial statements for the 2018 financial year: Average Inventory $350,000 Average Net receivables $400,000 Net credit sales $800,000 Current assets $600,000 Non-current assets $650,000 Account payable $350,000 Bank Bill (Short term) $520,000 Long Term debt $250,000 Ordinary equity S650,000 Net operating income $300.350 Cost of goods sold $150,000 Interest expense $ 45,000 Tax rate 30% Ratios Industry Benchmark (Average) 2:1 Current ratio Receivable turnover Average age of receivables Inventory Turnover Debt-to-equity ratio Net working capital Return on assets Return on equity 7 to 10 times 39 days 9 times 1.5:2 Positive 7.97% 9.08% Required: i) Calculate the following ratios and compare your results with industry benchmark stated above: a) Current ratio: Current assets Current liabilities b) Receivable turnover: Total Credit Sales/ Average Accounts Receivable c) Average age of receivables: (Accounts Receivable 365) / Sales Revenue d) Inventory Turnover: Sales / Inventory e) Debt-to-equity ratio: Total Debts/Total Equity f) Net working capital: Current Assets - Current Liability g) Return on assets: Net Income / Average Total Assets h) Return on equity: Net Income / Average Shareholders' Equity ii) Use the following template to answer your calculation, compare the result with Industry average and Interpretation of your result. Ratio formula (with calculation) Compare with Industry Average Interpretation