As part of the analytical procedures of Mahogany Products Ltd, you perform calculations of the following ratios:

REQUIRED
For each of the preceding ratios:
a. State whether there is a need to investigate the results further and, if so, the reason for further investigation.
b. State the approach you would use in the investigation.
c. Explain how the operations of Mahogany Products appear to differ from those of the industry.

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Industry averages Mahogany Products Ratio 20X1 20x0 20X1 20X0 1 Current ratio 2 Days to collect receivables 3 Days to sell inventory 4 Purchases divided by accounts payable 5 Inventory divided by current assets 6 Operating profit divided by tangible assets 7 Operating profit divided by net sales 8 Gross margin percentage 9 Earnings per share 3.30 8700 126.00 3.80 93.00 21.00 1160 2.20 6700 93.00 8.50 49 14 04 2.60 60.00 89.00 8.60 48 .12 04 .56 .08 .06 06 06 .27 $13.91 $1427 $2.09 S1.93