9. (Financial statement analysis) Carson Electronics management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found here

Balance Sheet ($000)	Carson Electronics, Inc.	BGT Electronics, Inc
Cash	$1,970	$1,530
Accounts receivable	4,470	5,960
Inventories	1,450	2,460
Current assets	$7,890	$9,950
Net fixed assets	16,020	25,050
Total assets	$23,910	$35,000
Accounts payable	$2,530	$4,980
Accrued expenses	1,030	1,480
Short-term notes payable	3,550	1,450
Current liabilities	$7,110	$7,910
Long-term debt	7,980	4,020
Owners' equity	8,820	23,070
Total liabilities and owners' equity	$23,910	$35,000

Income Statement ($000)	Carson Electronics, Inc	BGT Electronics, Inc.
Net sales (all credit)	$48,010	$69,980
Cost of goods sold	(36,020)	(42,040)
Gross profit	$11,990	$27,940
Operating expenses	(8,040)	(12,040)
Net operating income	$3,950	$15,900
Interest expense	(1,100)	(530)
Earnings before taxes	$2,850	$15,370
Income taxes (35%)	(998)	(5,380)
Net income	$1,852	$9,990
Total liabilities and owners' equity

A. Calculate the following ratios for both Carson and BGT:

A. Calculate the following ratios for both Carson and BGT.

Current ratio Operating return on assets

Times interest earned Debt ratio

Inventory turnover Average collection period

Total asset turnover Fixed asset turnover

Operating profit margin Return on equity

B. Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that Carsons management might focus on to improve its operations.

A. Calculate the following ratios for both Carson and BGT:

Carsons current ratio is _____(Round to two decimal places)