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Web Structure Inc. calculated the ratios shown below for 2023 and 2022: Required: 1. & 2. Identify whether the change in the ratios from
Web Structure Inc. calculated the ratios shown below for 2023 and 2022: Required: 1. & 2. Identify whether the change in the ratios from 2022 to 2023 is favourable ('F') or unfavourable ('U'), and calculate the 2023 ratios for Alberta Playground Inc. including a comparison against the industry averages. (Select the option "Neither F or U" if the option Favorable or Unfavorable is not applicable.) 2023 2022 Trend Industry Average Comparison to Industry Average Current ratio 1.111 1.00 1 1.6:1 Quick ratio 1.02:1 0.87 1 1.1:1 Accounts receivable turnover 16 20 Days' sales uncollected 38 34 Inventory turnover 6.6 7.3 Days' sales in inventory 52 40 Total asset turnover 3.5 2.1 Debt ratio 70 50 Times interest earned 2.5 7.8 16 times 21 days 5 times 70 days 2.3 times 35 % 50 times Profit margin 17.0 19.5 14 % Gross profit ratio 16.0 15.0 18 %
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