You are considering investing in the Swisher Ltd. and to make your decision you have obtained the following financial information: Current Year Preceding Year Balance Sheet Cash 28,000 S 32,000 Short-term investments 10,000 $ 17,000 Accounts receivables 5,000 $ 8,000 300 $ 2,500 4,500 Prepaid Expenses Inventory 6,000 $ Total Current Assets 49,300 $ 64,000 Total Long-Term Assets 80,000 $ 82,000 Total Assets 129,300 $ 146,000 Accounts Payable 25,000 $ 23,000 Accrued Liabilities 9,000 $ 7,500 Salary Payable Total Current Liabilities 7,000 S 41,000 $ 9,000 39,500 Income Statement Net Sales Revenues 88,000 Cost of Goods Sold 57,000 Operating Expenses 15,300 * interest expense included in operating expenses 3,000 The industry averages for certain ratios are as follows: Industry Benchmarks Current Ratio 1.35 Acid test quick ratio 1.10 Inventory Turnover 9.00 Accounts Receivable Turnover 7.00 Return on Total Assets 12.00% Gross Profit Percentage 30.00% Return on Net Sales 17.00% Required Complete the following ratio analysis for the current year to determine if this would be a good company to invest in. When making your decision consider the company's liquidity, profitability, and ability to effectively use assets compared to the industry. Would you invest in this company? 1. Current Ratio 2. Quick (acid-test) ratio 3. Inventory Turnover 4. Accounts Receivable Turnover 5. Return on Total Assets 6. Gross Profit Percentage 7. Return on Net Sales