The 2013 income statement of Anderson Medical Supply Company reported net sales of $8 million, cost of goods sold of $4.8 million, and net income of $800,000. The following table shows the company’s comparative balance sheets for 2013 and 2012:

Some industry averages for Anderson’s line of business are
Inventory turnover 5 times
Average collection period 25 days
Asset turnover 1.8 times
Required:
Assess Anderson’s asset management relative to itsindustry.

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$ in 000s) 2013 2012 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) S 300 700 900 2,400 $4,300 $ 380 500 700 2,120 Total assets $3,700 Liabilities and Shareholders' Equity Current liabilities Bonds payable Paid-in capital Retained earnings S 960 1,200 1,000 1,140 $4,300 S 830 1,200 1,000 670 Total liabilities and shareholders' equity $3,700