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:

	Carson Electronics, Inc. Balance Sheet ($000)			BGT Electronics, Inc. Balance Sheet ($000)
Cash		$2,010			$1,450
Accounts receivable		4,540			5,960
Inventories		1,470			2,480
Current assets		$8,020			$9,890
Net fixed assets		16,030			25,050
Total assets		$24,050			$34,940
Accounts payable		$2,450			$4,990
Accrued expenses		990			1,500
Short-term notes payable		3,460			1,520
Current liabilities		$6,900			$8,010
Long-term debt		7,980			3,960
Owners' equity		9,170			22,970
Total liabilities and owners' equity		$24,050			$34,940

	Carson Electronics, Inc. Income Statement ($000)			BGT Electronics, Inc. Income Statement ($000)
Net sales (all credit)		$47,990			$69,980
Cost of goods sold		(36,040)			(42,010)
Gross profit		$11,950			$27,970
Operating expenses		(8,020)			(11,970)
Net operating income		$3,930			$16,000
Interest expense		(1,170)			(600)
Earnings before taxes		$2,760			$15,400
Income taxes (40%)		(1,104)			(6,160)
Net income		$1,656			$9,240

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.