By monday, February 23, 2015 solve the problem below, calculate the ratios, interpret the results against the industry average, and fill in the table on the worksheet. Then, provide an analysis of how those results can be used by the business to improve its performance.\tBalance Sheet as of December 31, 2010\tGary and Company\tCash\u00a0 \u00a0\u00a0\u00a0 $45 \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 Accounts payables\u00a0 \ufffd\u00a0\u00a0 $45\tReceivables\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 66 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 Notes payables \ufffd \ufffd \ufffd 45\tInventory \ufffd \ufffd\u00a0 159 \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 Other current liabilities 21\tMarketable securities\u00a0\u00a0\u00a0 33 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 Total current liabilities \u00a0\u00a0 $111\tTotal current assets\u00a0 \ufffd $303 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0\tNet fixed assets\u00a0 \ufffd \ufffd\u00a0\u00a0 147 \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 Long Term Liabilities \ufffd\u00a0\tTotal Assets\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 $450 \ufffd \ufffd \ufffd \ufffd Long-term debt\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0 24\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd Total Liabilities\u00a0 $135\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd Owners Equity\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd Common stock\u00a0 $114\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd Retained earnings \ufffd \ufffd 201\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd Total stockholders’ equity \ufffd \ufffd\u00a0 315\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd Total liabilities and equity \ufffd \ufffd\u00a0\u00a0 $450\t\u00a0\tIncome Statement Year 2010\t \ufffd \ufffd \ufffd \u00a0\tNet sales \ufffd \ufffd\u00a0\u00a0 $795\tCost of goods sold \ufffd\u00a0\u00a0\u00a0\u00a0 660\tGross profit\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 135\tSelling expenses\u00a0 \ufffd \ufffd\u00a0 73.5\tDepreciation \ufffd 12\tEBIT \ufffd\u00a0 49.5\tInterest expense\u00a0 \ufffd \ufffd 4.5\tEBT \ufffd\u00a0\u00a0\u00a0 45\tTaxes (40%)\u00a0 \ufffd 18\tNet income \ufffd\u00a0 27\t\u00a0\t1. Calculate the following ratios AND interpret the result against the industry average:\tRatio \ufffd Your Answer \ufffd Industry Average \ufffd \ufffd\u00a0\u00a0 Your Interpretation\t\u00a0\t(Good-Fair-Low-Poor)\tProfit margin on sales\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 3% \ufffd\u00a0\u00a0\u00a0\u00a0\tReturn on assets \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 9% \ufffd\u00a0\u00a0\u00a0\u00a0\tReceivable turnover \ufffd\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 16X \ufffd\u00a0\u00a0\u00a0\tInventory turnover \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 10X \ufffd\u00a0\u00a0\u00a0\tFixed asset turnover \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 2X \ufffd \ufffd\tTotal asset turnover \ufffd\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 3X \ufffd \ufffd\tCurrent ratio \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 2X \ufffd \ufffd\tQuick ratio \ufffd\u00a0\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 1.5X \ufffd\u00a0\tTimes interest earned\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 7X \ufffd \ufffd\t\u00a0\t2. Analysis:\tGive your interpretation of what the ratios calculations show and how the business can use this information to improve its performance. Justify all answers.\tHighlight your answers.\u00a0\tReceivable turnover requires the use of credit sales. Since you are not given this number please use the sales figure of 795.\tI am pasting the required form for you to complete, as a reminder.\u00a0 Remember to show me your work. You can put the calculations at the end of your paper. If these are not included I will have to count the answer wrong.\u00a0\tRatio \ufffd Your Answer \ufffd Industry Average \ufffd \ufffd\u00a0\u00a0 Your Interpretation\t(Good-Fair-Low-Poor)\tProfit margin on sales\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 3% \ufffd\u00a0\u00a0\u00a0\u00a0\tReturn on assets \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 9% \ufffd\u00a0\u00a0\u00a0\u00a0\tReceivable turnover \ufffd\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 1.6X \ufffd\u00a0\tInventory turnover \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 10X \ufffd\u00a0\u00a0\u00a0\tFixed asset turnover \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 2X \ufffd \ufffd\tTotal asset turnover \ufffd\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 3X \ufffd \ufffd\tCurrent ratio \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 2X \ufffd \ufffd\tQuick ratio \ufffd\u00a0\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 1.5X<\/p>\n","protected":false},"excerpt":{"rendered":"
By monday, February 23, 2015 solve the problem below, calculate the ratios, interpret the results against the industry average, and fill in the table on the worksheet. Then, provide an analysis of how those results can be used by the Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216549","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216549"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216549\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}