Using the financial information provided on the attached income statement and balance sheet for Lakeside Company, perform the following analytical procedures:

Current	1.36	1.36
# Days inventory on hand	93.03	100.52
Receivable collection period (days)	20.63	24.71
Debt-to-total-assets	75%	75%
Times interest earned	3.58 times	2.79 times
Profit Margin	2.79%	2.27%
Return on Assets	8.48%	6.73%
Return on Equity	33.17%	26.41%

What is your overall assessment of the significance of the ratios in 2007 and 2008? What is your overall assessment of the change in ratios from 2007 to 2008?

Answer rating: 100% (QA)

Importance of financial ratios To ensure the continued profit... View the full answer