Use the information in the balance sheet and income statement to compute the financial ratios for Roland. Perform the DuPont analysis. Compare Roland against its industry average. Mak e conclusions about Roland's relative performance. 

	Roland	Industry Comparison
Current ratio		2.1
Quick ratio		1.1
Debt ratio		.5
Times interest earned		4.0
Inventory turnover		7.0
Average collection period		34 days
Fixed assets turnover		4.0
Total assets turnover		2.0
Profit margin		5%
Return on total assets		16%
Return on equity		20%

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1 1 2 3. Roland Inc. I 5 6 7 Net sales Cost of goods sold Operating expenses Depreciation EBIT Interest Taxable income Taxes Net income 2010 Income Statement (In Thousands of Dollars) $6,026 4,500 800 100 $ 626 196 $ 430 Retained earnings Dividends ASSETS Current assets Cash Marketable securities 145 $285 $200 $85 2010 Balance Sheet $ 120 80 Accounts receivable 800 Inventory 1,000 Total $2,000 Fixed Assets Net plant and equipment $1200 Total Assets $3200 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 300 Notes payable 500 Accruals 40 Total $ 840 Long-term debt $ 860 Stockholders' equity Common stock $ 500 Retained earnings Total Total Claims 1,000 $1500 $3200 1 1 2 3. Roland Inc. I 5 6 7 Net sales Cost of goods sold Operating expenses Depreciation EBIT Interest Taxable income Taxes Net income 2010 Income Statement (In Thousands of Dollars) $6,026 4,500 800 100 $ 626 196 $ 430 Retained earnings Dividends ASSETS Current assets Cash Marketable securities 145 $285 $200 $85 2010 Balance Sheet $ 120 80 Accounts receivable 800 Inventory 1,000 Total $2,000 Fixed Assets Net plant and equipment $1200 Total Assets $3200 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 300 Notes payable 500 Accruals 40 Total $ 840 Long-term debt $ 860 Stockholders' equity Common stock $ 500 Retained earnings Total Total Claims 1,000 $1500 $3200