1. Given the balance sheet and income state for Simmons Maintenance Company, compute the ratios that are also shown for the industry average. The "right answer" refers to the question of whether a particular ratio for Simmons is better or worse than the industry average.

2. Overall are they doing better or worse than the industry? What stands out themost?

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SIMMONS MAINTENANCE COMPANY Balance Sheet Assets Cash Accts. Receivable Inventory Liabilities S 15,000 S 21,000 20.000 5.000 46.000 30,000 64.000 Total Assets S140,000 Total Liabilities & Stockholders' Equity S140,000 Accounts Payable 22.000 Notes Payable 30000 Accrued Expenses 67,000 73000 Long-tem Debt Current Assets Current Liabilities Net Fixed Assets Stockholders' Equity Income Statement S120,000 45.000 75.000 Sales (80% credit) Less: Cost of Goods Sold Gross Profit Selling and Administrative Expense20,000 Rent Expense (Lease) EBIT Interest Expense Eamings before taxes Taxes (@ 25%) Net Income 8.000 28.000 47,000 42.000 10.500 S 31,500 Common shares outstanding 15.000 EPS S 2.10 Ratios for Simmons Industry Average Better B) or Worse W Ratio Profit margin Return on assets Return on e Receivables turnover Avg. collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratic Debt to total assets Times interest earned Fixed charge coverage 17.50% 20.80% 35% 4.4x 68.0 days 3.5x 2.4x 76x 1.28 0.85 0.45 12.0x 3.6x quty