Baker & Co. has applied for a loan from the Trust Us Bank to invest in several potential opportunities. To evaluate the firm as a potential debtor, the bank would like to compare Baker & Co. to the industry. The following are the financial statements given to Trust Us Bank : Please recommend this loan financial statement.

Balance Sheet 12/31/2020 12/31/2021

Cash	$305	270
Accounts receivable	275	290

Inventory 600 580

Current assets 1,180 1,140

Plant and equipment 1,700 1,940

Less: acc depr (500) (600) Net plant and equipment 1,200 1,340 Total assets $2,380 $2,480

Liabilities and Owners' Equity

Accounts payable $150 $200

Notes payable	125 0
Current liabilities	275 200
Bonds Owners' equity	500 500
Common stock	165	305
Paid-in-capital	775	775

Retained earnings 665 700

Total owners' equity 1,605 1,780

Total liabilities and owners' equity $2,380 $2,480

Income Statement

Sales (100% credit) $1,100 $1,330

Cost of goods sold 600 760

Gross profit	500	570
Operating expenses	20	30
Depreciation	160 200
Net operating income	320 340
Interest expense	64 57
Net income before taxes	256 283
Taxes	87 96
Net income	$169 $187

Compute the following ratios:

2020 2021 Industry Norms

Current ratio ?	? 5.0
Acid test ratio	3.0
Inventory turnover	2.2
Average collection period	90 days
Debt ratio	.33
Times interest earned	7.0
Total asset turnover	.75
Fixed asset turnover	1.0
Operating profit margin	20%
Net profit margin	12%
Return on total assets	9.00%
Return on equity	10.43%