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:??

a. Calculate the following ratios for both Carson and? BGT: Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed asset turnover 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? Carson's management might focus on to improve its operations.

a. Calculate the following ratios for both Carson and? BGT: ?Carson's current ratio is nothing. ?(Round to two decimal? places.)

Income Statement ($000)	Carson Electronics, Inc.	BGT Electronics, Inc.
Net sales (all credit)	$47,970	$69,990
Cost of goods sold	(36,040)	(42,010)
Gross profit	$11,930	$27,980
Operating expenses	(8,010)	(12,040)
Net operating income	$3,920	$15,940
Interest expense	(1,100)	(570)
Earnings before taxes	$2,820	$15,370
Income taxes (35%)	(987)	(5,380)
Net income	$1,833	$9,990