BUSI 320 Comprehensive Problem 1 Version SPRING
Use the following information to answer the questions below:
	note: all sales are credit sales
	Income Stmt info:	2019	2020
	Sales	$ 900,000	$ 990,000
	less Cost of Goods Sold:	300,000	320,000
	Gross Profit	600,000	670,000
	Operating Expenses	500,000	505,000
	Earnings before Interest & Taxes	100,000	165,000
	Interest exp	25,000	25,000
	earnings before Taxes	75,000	140,000
	Taxes	30,000	45,000
	Net Income	$ 45,000	$ 95,000
	Balance Sheet info:	12/31/2019	12/31/2020
	Cash	60,000	$ 65,000
	Accounts Receivable	100,000	$ 120,000
	Inventory	80,000	$ 130,000
	Total Current Assets	$ 240,000	$ 315,000
	Fixed Assets (Net)	$ 300,000	$ 330,000
	Total Assets	$ 540,000	$ 645,000
	Current Liabilities	$ 130,000	$ 140,000
	Long Term Liabilities	$ 170,000	$ 200,000
	Total Liabilities	$ 300,000	$ 340,000
	Stockholder's Equity	$ 240,000	$ 305,000
	Total Liab & Equity:	$ 540,000	$ 645,000

Compute each of the following ratios for 2019 and 2020 and
indicate whether each ratio was getting "better" or "worse" from 2019 to 2020
and whether the 2020 ratio was "good" or "bad" compared to the Industry Avg
(round all numbers to 2 digits past the decimal place)
	2019	2020	Getting Better or Getting Worse?	2020 Industry Avg	"Good" or "Bad" compared to Industry Avg
Profit Margin	5%	9.6%	Better	0.08	Good
Current Ratio	1.85	2.25	Better	1.80	Good
Quick Ratio	1.23	1.32	Better	1.12	Good
Return on Assets	8.3	14.73	Better	0.18	Bad
Debt to Assets				0.50
Receivables turnover				12.00
Avg. collection period*				22.10
Inventory Turnover**				8.25
Return on Equity				0.16
Times Interest Earned				6.15
*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)

Need help with last six parts of the problem.