Compare the results of two years of ratios for Prince George Corp.

Required

1. Identify whether the change from 2019 to 2020 was good 1 + 2 or bad 1 - 2.

2. Assess whether the performance in 2020 is good 1 + 2 or bad 1 - 2 compared to the industry average presented in the benchmark column.

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1. Ratio Change + or - 2. Performance Ratio 2020 2019 Benchmark + or - Current ratio 1.5 1.7 2 Acid-test ratio 0.83 0.85 0.95 Inventory turnover 8 7 10 Accounts receivable turnover 12 14 13 Debt ratio 0.3 0.2 0.7 Times-interest-earned ratio 7 6 4 Return on assets 0.06 0.04 0.05 Return on common shareholders' equity 0.24 0.23 0.14