2.Using the following information, answer the questions listed below: Dana Dairy Products Key Ratios Industry Average 1.3 0.8 23 days 21.7 64.7% 4.8 13.6% 1.0% 2.9% 8.2% Current ratio Quick ratio Average collection period Inventory turnover Debt ratio Times interest earned Gross profit margin Net profit margin Return on total assets Return on equity Income Statement, Dana Dairy Products, For the Year Ended December 31, 2020 Sales revenue $100,000 87,000 Less: Cost of goods sold Gross profits $ 13,000 11,000 Less: Operating expenses Operating profits $ 2,000 Less: Interest expense 500 1,500 Net profits before taxes Less: Taxes (40%) 600 Net profits after taxes 900 Balance Sheet Dana Dairy Products December 31, 2020 $ Actual 2012 $ 1.0 0.75 30 days 19 50% 5.5 Actual 2013 12.0% 0.5% 2.0% 4.0% Cash Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Accounts payable Accruals Total current liabilities Long-term debt Total liabilities Common stock Assets i. Liabilities & Stockholders' Equity Retained earnings Total stockholders' equity Total liabilities & stockholders equity $35,000 13,250 Calculate the following ratios for 2020: a. Current ratio. b. Net working capital c. Inventory turnover d. e. Gross profit margin f. Net profit margin g. Return on assets Average collection period $1,000 8,900 4,350 $14,250 21,750 $36,000 $9,000 6,675 $15,675 4,125 $19,800 1,000 15,200 $16,200 $36,000 h. Return on equity ii. Based on the calculations in part (1) above, comment on the performance of the company as compared to its industry and its own last year results. (20 Marks)