Question: How do I do the calculation, please explain. 5 Web Structure Inc. calculated the ratios shown below for 2020 and 2019: Required: 1. & 2.

 How do I do the calculation, please explain. 5 Web Structure

How do I do the calculation, please explain.

5 Web Structure Inc. calculated the ratios shown below for 2020 and 2019: Required: 1. & 2. Identify whether the change in the ratios from 2019 to 2020 is favourable ('F') or unfavourable (U') and assess whether the 2020 ratios are favourable or unfavourable in comparison to the industry averages. (Select the option "Neither For U" if the option Favorable or Unfavorable is not applicable.) Skipped 2019 Trend Comparison to Industry Average 2020 1.18:1 1.09 : 1 1.07:1 0.94:1 16 23 25 22 Industry Average 1.6:1 1.1:1 16 times 21 days 5 times 70 days 23 times 35 % 8.0 Current ratio Quick ratio Accounts receivable turnover Days' sales uncollected Inventory turnover Days' sales in inventory Total asset turnover Debt ratio Times interest earned Profit margin Gross profit ratio 8.1 50 37 4.2 2.8 68 47 3.2 11.3 50 times 14 % 20.5 23.0 13.0 12.0 18 %

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