BUSI 320 Comprehensive Problem 1 Version FALL D
Use the following information to answer the questions below:
	note: all sales are credit sales
	Income Stmt info:	2016	2017
	Sales	$ 1,050,000	$ 1,207,500
	less Cost of Goods Sold:	325,000	357,500
	Gross Profit	725,000	850,000
	Operating Expenses	575,000	609,500
	Earnings before Interest & Taxes	150,000	240,500
	Interest exp	25,000	31,000
	earnings before Taxes	125,000	209,500
	Taxes	50,000	83,800
	Net Income	$ 75,000	$ 125,700
	Balance Sheet info:	12/31/2016	12/31/2017
	Cash	60,000	$ 66,000
	Accounts Receivable	80,000	$ 96,000
	Inventory	110,000	$ 121,000
	Total Current Assets	$ 250,000	$ 283,000
	Fixed Assets (Net)	$ 300,000	$ 312,000
	Total Assets	$ 550,000	$ 595,000
	Current Liabilities	$ 130,000	$ 143,000
	Long Term Liabilities	$ 150,000	$ 170,000
	Total Liabilities	$ 280,000	$ 313,000
	Stockholder's Equity	$ 270,000	$ 282,000
	Total Liab & Equity:	$ 550,000	$ 595,000

Compute each of the following ratios for 2016 and 2017 and
indicate whether each ratio was getting "better" or "worse" from 2016 to 2017
and whether the 2017 ratio was "good" or "bad" compared to the Industry Avg.
(round all numbers to 2 digits past the decimal place)

	2016	2017	Getting Better or Getting Worse?	2017 Industry Avg	"Good" or "Bad" compared to Industry Avg
Profit Margin				0.11
Current Ratio				1.80
Quick Ratio				1.12
Return on Assets				.22
Debt to Assets				.50
Receivables turnover				13.00
Avg. collection period*				29.10
Inventory Turnover**				8.25
Return on Equity				0.35
Times Interest Earned				7.15
*Assume a 360 day year
**Inventory Turnover can be computed 2 different ways. Use the formula listed in the text
(the one the text indicates many credit reporting agencies generally use)