The following selected information is available for Danier Leather Inc. for three fiscal years (in thousands):

Instructions
(a) Calculate the current ratio, gross profit margin, and profit margin for each year.
(b) Comment on whether the ratios have improved or deteriorated over the three years.
(c) Compare the 2010 ratios calculated in (a) with the following industry averages: current ratio 3.4:1; gross profit margin 49.2%; and profit margin 9.8%. Are Danier Leather's ratios better or worse than those of its industry?

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2009 $ 54,836 48,056 $ 49,853 10,967 162,106 88,589 2010 2008 Current assets Current liabilities Net sales Cost of goods sold Profit (loss) 17,958 164,217 77,438 7,219 11,205 163,550 87,365 12,892 (2,309)