?(Financial statement? analysis)??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:??

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

Balance Sheet ($000)	Carson Electronics, Inc.	BGT Electronics, Inc.
Cash	$2,030	$1,490
Accounts receivable	4510	6050
Inventories	1530	2470
Current assets	$8,070	$10,010
Net fixed assets	16010	25050
Total assets	$24,080	$35,060
Accounts payable	$2,460	$4,960
Accrued expenses	990	1510
Short-term notes payable	3450	1450
Current liabilities	$6,900	$7,920
Long-term debt	7960	4000
Owners' equity	9220	23140
Total liabilities and owners' equity	$24,080	$35,060

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 ______?(Round to two decimal? places.)

?BGT's current ratio is ________(Round to two decimal? places.)

?Carson's times interest earned is ______times. (Round to two decimal? places.)

?BGT's times interest earned is ______times. (Round to two decimal? places.)

?Carson's inventory turnover is ______times. (Round to two decimal? places.)

?BGT's inventory turnover is ______times. (Round to two decimal? places.)

?Carson's total asset turnover is _______?(Round to two decimal? places.)

?BGT's total asset turnover is______. ?(Round to two decimal? places.)

?Carson's operating profit margin is_____?%. ?(Round to one decimal? place.)

?BGT's operating profit margin is ______%. ?(Round to one decimal? place.)

?Carson's operating return on assets is ______?%. ?(Round to one decimal? place.)

?BGT's operating return on assets is _______%. ?(Round to one decimal? place.)

?Carson's debt ratio is _____?%. ?(Round to one decimal? place.)

?BGT's debt ratio is _____?%. ?(Round to one decimal? place.)

?Carson's average collection period is ______days. (Round to one decimal? place.)

?BGT's average collection period is ______days. (Round to one decimal? place.)

?Carson's fixed asset turnover is ______?(Round to two decimal? places.)

?BGT's fixed asset turnover is ______. (Round to two decimal? places.)

?Carson's return on equity is ______?%. (Round to one decimal? place.)

?BGT's return on equity is ______?%. ?(Round to one decimal? place.)

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.???(Select the best choices? below.)

Category of Financial Ratios	? Carson's Performance vs. BGT
1.??Liquidity Ratios Current Ratio	A. Better Your answer is not correct. B. Similar C. Worse This is the correct answer.
Average Collection Period	A. Better B. Similar Your answer is not correct. C. Worse This is the correct answer.
Inventory Turnover	A. Better This is the correct answer. B. Similar C. Worse Your answer is not correct.

?(Select the best choices? below.)

Category of Financial Ratios	? Carson's Performance vs. BGT
2.??Capital Structure Ratios Debt Ratio	A. Better Your answer is not correct. B. Similar C. Worse This is the correct answer.
Times Interest Earned	A. Better Your answer is not correct. B. Similar C. Worse This is the correct answer.

?(Select the best choices? below.)

Category of Financial Ratios	? Carson's Performance vs. BGT
3.??Asset Management Efficiency Ratios Total Assets Turnover	A. Better B. Similar Your answer is correct. C. Worse
Fixed Assets Turnover	A. Better This is the correct answer. B. Similar C. Worse Your answer is not correct.

?(Select the best choices? below.)

Category of Financial Ratios	? Carson's Performance vs. BGT
4.??Profitability Ratios Operating Profit Margin	A. Better Your answer is not correct. B. Similar C. Worse This is the correct answer.
Operating Return on Assets	A. Better B. Similar Your answer is not correct. C. Worse This is the correct answer.
Return on Equity	A. Better B. Similar Your answer is not correct. C. Worse