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BUSI 320 Comprehensive Problem 1 Summer
Use the following information to answer the questions below:
	note: all sales are credit sales
	Income Stmt info:	2016	2017
	Sales	$ 1,050,000	$ 1,102,500
	less Cost of Goods Sold:	325,000	351,000
	Gross Profit	725,000	751,500
	Operating Expenses	575,000	609,500
	Earnings before Interest & Taxes	150,000	142,000
	Interest exp	25,000	30,000
	earnings before Taxes	125,000	112,000
	Taxes	50,000	44,800
	Net Income	$ 75,000	$ 67,200
	Balance Sheet info:	12/31/2016	12/31/2017
	Cash	60,000	$ 57,000
	Accounts Receivable	80,000	$ 80,800
	Inventory	110,000	$ 121,000
	Total Current Assets	$ 250,000	$ 258,800
	Fixed Assets (Net)	$ 300,000	$ 318,000
	Total Assets	$ 550,000	$ 576,800
	Current Liabilities	$ 130,000	$ 149,500
	Long Term Liabilities	$ 150,000	$ 140,000
	Total Liabilities	$ 280,000	$ 289,500
	Stockholder's Equity	$ 270,000	$ 287,300
	Total Liab & Equity:	$ 550,000	$ 576,800
	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 was "good" or "bad" when compared to the Industry Avg in 2017
	(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				1.90
	Quick Ratio				1.12
	Return on Assets				0.26
	Debt to Assets				0.55
	Receivables turnover				18.00
	Avg. collection period*				21.20
	Inventory Turnover**				8.25
	Return on Equity				0.25
	Times Interest Earned				8.15
	*Assume a 360 day year
	**Inventory Turnover can be computed 2 different ways. Use the formula listed in the text and by Connect.
	(the one the text indicates many credit reporting agencies generally use)