please answer question number 2 and 3

MINI CASE Ed Cowan was recently hired by Tuxedo Air Inc. to assist the organization with its financial planning and to evaluate the organization's performance. Ed graduated from university six years ago with a finance degree. He has been employed in the finance department of a TSX100 company since then. Tuxedo Air was founded 12 years ago by friends Mark Taylor and Jack Rodwell. The organization manufactured and sold light airplanes over this period, and its products have received high reviews for safety and reliability. The organization has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models; the Sparrow, which sells for $53,000, and the Vulture, which sells for $78,000. Although the company manufactures aircraft, its operations are different from commercial aircraft companies. Tuxedo Air builds aircraft to order. By using prefabricated parts, the organization can complete the manufacture of an airplane in only five weeks. The organization also receives a deposit on each order, as well as another partial payment before the order is complete. In contrast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed. Mark and Jack have provided the following financial statements. Ed has gathered the industry ratios for the light airplane manufacturing Industry. Tuxedo Alr Inc. 2015 Statement of Comprehensive Income Sales $36,599 300 Cost of goods sold 26,669.496 Other expenses 4641,000 Depreciation 1.640.200 EBIT 5 3.648,604 Interest 573 200 Taxable income 5 3,075,404 Taxes (40) 1.230,162 Net income $1845.242 Dividends $ 560,000 Add to retained earnings 1.285,242 Click here for a description of Table: Mini Case: Tuxedo Air Ino. 2015 Statement of Comprehensive Income Assets Current Ossets Cou Accounts receio Taxedo Alr Inc. 2015 Statement of Financial Position Latities and Equity Current bilier 5396,900 Accounts payable 637.560 Notes pooble Total current is 933.400 5297.660 Long-term det nawe 5 844550 2,773.060 Inventory Total currents Fred us 5 5050,000 Inventory 939.400 Total current sets $ 1467,860 Longterm debt 5 5,050,000 Fixed sets Owners' equity Net plant and equipment 515 411,620 Common stock $ 322,500 Retained earnings 9233 930 Total equity $.9.556.430 Total Oksels 517 379 480 Total liabilities and owners' equity $17,379 480 Click here for a description of Table:Mini Case: Tuxedo Air Inc. 2015 Statement of Financial Position Light Airplane Industry Ratlos Lower Quartile Median Upper Quartile Current ratio 0.50 143 189 Quick ratio 0.21 0.38 0.62 Cash ratio 008 0.21 0.39 Total asset turnover 068 0.85 138 Inventory turnover 4.89 6.15 10.89 Receivables turnover 6.27 482 1411 Total debt ratio 0.44 0.52 0.61 Debt-equity ratio 0.74 1.08 1.56 Equity multiplier 2.08 2.56 Times interest earned 5.18 8.06 9.83 Cash coverage ratio 5.84 8.43 10.27 Profit margin 4.05% 6.98 987% Return on Ossets 6,05% 1053 13 211 Return on equity 4.93% 16.54% 26.15% Click here for a description of Table: Mini Case: Light Airplane Industry Ratios. 179 Questions 1. Using the financial statements provided for Tuxedo Air, calculate each of the ratios listed in the table for the light aircraft industry 2. Mark and Jack agree that a ratio analysis can provide a measure of the company's performance. They have chosen Bombardier as an aspirant company. Would you choose Bombardier as an aspirant company? Why or why not? There are other aircraft manufacturers Tuxedo Air could use as aspirant companies Discuss whether it is appropriate to use any of the following companies Boeing, XOJET, Piper Aircraft and AiroCentury 3. Compare the performance of Tuxedo Air to the industry. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an Inventory ratio calculated as inventory divided by current liabilities. How do you think Tuxedo Air would compare to the industry average? Questions 1. Using the financial statements provided for Tuxedo Air, calculate each of the ratios listed in the table for the light aircraft industry 2. Mark and Jack agree that a ratio analysis can provide a measure of the company's performance They have chosen Bombardier as an aspirant company. Would you choose Bombardier as an aspirant company? Why or why not? There are other aircraft manufacturers Tuxedo Air could use as aspirant companies. Discuss whether it is appropriate to use any of the following companies Boeing, XOJET, Piper Aircraft, and AeroCentury 3. Compare the performance of Tuxedo Air to the industry. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How do you think Tuxedo Air would compare to the industry average