Total - Total Question 1 answer Required Question 2 (17 marks) You are considering investing in the Swisher Ltd. and to make your decision you have obtained the following financial information: Current Year Preceding Year Balance Sheet Cash Short-term investments Accounts receivables Prepaid Expenses Inventory Total Current Assets Complete the following ratio analysis for the current year to determine if this would be a good company to invest in. When making your decision consider the company's liquidity, profitability, and ability to effectively use assets compared to the industry. Would you invest in this company? on any 1. Current Ratio 2. Quick (acid-test) ratio 3. Inventory Turnover 4. Accounts Receivable Turnover 5. Return on Total Assets 6. Gross Profit Percentage 7. Return on Net Sales $ $ $ $ $ S $ 28,000 $ 10,000 $ 5,000 $ 300 $ 6,000 $ 49,300 $ 32,000 17,000 8,000 2,500 4,500 64,000 Total Long-Term Assets Total Assets $ $ 80,000 $ 129,300 $ 82,000 146,000 Accounts Payable Accrued Liabilities Salary Payable Total Current Liabilities $ $ $ $ 25,000 $ 9,000 $ 7,000 $ 41,000 $ 23,000 7,500 9,000 39,500 Income Statement Net Sales Revenues Cost of Goods Sold Operating Expenses interest expense included in operating expenses $ $ $ 88,000 57,000 15,300 $ 3,000 The industry averages for certain ratios are as follows: Industry Benchmarks Current Ratio 1.35 Acid test quick ratio 1.10 Inventory Turnover 9.00 Accounts Receivable Turnover 7.00 Return on Total Assets 12.00% Gross Profit Percentage 30.00% Return on Net Sales 17.00%