Wilcox Ltd. has total assets of $35,000,000, and manufactures fine hand tools. Selected financial ratios for Wilcox and industry averages are as follows:

Required:Referring to the information presented above:1. Identify two financial ratios of particular interest to:a. A financial institution that provides an operating line of credit for daily cash management needs. The line of credit is secured with a charge on inventory.b. A supplier, about to decide whether to sell to Wilcox on credit.c. An investment banker, consulting with Wilcox on a potential public offering of common shares.2. Discuss what these financial ratios reveal about Wilcox.

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Current ratio Quick ratio Inventory turnover Return on equity Debt-to-equity ratio Return on assets Asset turnover Operating margin 20X5 2.41 1.11 2.62 0.16 1.44 12 3.14 .06 Wilcox 20X4 2.12 1.10 2.78 0.14 1.37 11 3.01 .05 20X3 2.04 1.05 2.90 0.15 1.41 11 3.00 .05 Industry Average 2.28 1.22 3.50 0.11 0.95 10 3.70 .05