Question: please solve this problem Appendix Two (Benchmarking studies) Objective: To conduct ratio analysis of a comparable company (Waterioo Corporation) and compare with that of the

Appendix Two (Benchmarking studies) Objective: To conduct ratio analysis of a comparable company (Waterioo Corporation) and compare with that of the industry. - Based on the above information the consulting group will conduct ratio analysis for the following ratios: Current ratio Receivable's turnover Times's interest earned Profit margin Days in inventory Return on assets Cash current debt coverage ratio - As a next step the group will compare the ratios calculated above with industry benchmarks. The benchmarks are indicated within brackets besides each ratio. Current ratio (3 to 1 ) Receivable's turnover (13 times) Times's interest earned ( 9 times) Profit margin (10\%) Days in inventory ( 60 days) Return on assets (12\%) Cash current debt coverage ratio ( 2 times)
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