Complete the following questions using Microsoft Word or Excel, as appropriate. Review the grading rubric to confirm you are meeting the assignment requirements.

Below are the balance sheet and income statement for Happy Hamburger Company.

Happy Hamburger Company
Balance Sheet as of December 31, 20XX
Assets		Liabilities and Shareholder Equity
Cash	85,000	Accounts payable	145,000
Accounts Receivable	340,000	Current portion of debt	90,000
Inventories	250,000	Other current liabilities	114,000
Total current assets	675,000	Total current liabilities	349,000
Net fixed assets	360,000	Long-term debt	265,000
Total assets	1,035,000	Total liabilities	614,000
		Common equity	421,000
		Total liabilities & equity	1,035,000

Happy Hamburger Company
Income Statement for the year ending December 31, 20XX
Sales	1,810,000
Costs of goods sold	1,510,000
Selling, general and administrative expenses	152,000
Earning before interest and taxes (EBIT)	148,000
Interest expense	26,200
Earning before taxes (EBT)	121,800
Federal and state income taxes (40%)	48,720
Net Income	73,080

Required:

Calculate the following ratios for the company.

Explain whether the company is doing better or worse than the industry average for each ratio.

	Happy Hamburger	Industry Average
Current ratio		1.7
Days sales outstanding (based on 365 day year)		36 days
Inventory turnover		7.3
Fixed asset turnover		12.1
Total asset turnover		3.00
Return on sales		3.20%
Return on assets		3.60%
Return on equity		9.00%
Debt ratio		71%