As part of the analytical procedures of Mahogany Products Inc., you perform calculations of the following ratios.

REQUIRED
For each of the preceding ratios:
a. State whether there is a need to investigate the results further and, if so, the reason for further investigation.
b. State the approach you would use in the investigation.
c. Explain how the operations of Mahogany Products Inc. appear to differ from those of the industry.

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Ratio 1. Current ratio 2. Days to collect receivables 3. Days to sell inventory 4. Purchases divided by accounts payable 5. Inventory divided by current assets 6. Operating earnings divided by tangible assets 7. Operating earnings divided by net sales 8. Gross margin percentage 9. Earnings per share Industry Averages 2020 3.30 87.00 126.00 11.70 0.56 0.08 0.06 0.21 $14.27 2019 3.80 93.00 121.00 11.60 0.51 0.06 0.06 0.27 $13.91 Mahogany Products Inc. 2020 2019 2.20 2.60 67.00 60.00 93.00 89.00 8.50 8.60 0.49 0.48 0.14 0.12 0.04 0.04 0.21 0.19 $2.09 $1.93