Question: Web Structure Inc. calculated the ratios shown below for 2020 and 2019: Required: 1. & 2. Identify whether the change in the ratios from 2019

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.) 2020 2019 Trend ook Industry Average Comparison to Industry Average Current ratio 1.17:1 1.06 1 1.6:1 rim Quick ratio 1.08:1 0.93 1 1.1:1 rences Accounts receivable turnover 16 24 16 times Days' sales uncollected 44 40 Inventory turnover 7.8 7.9 Days' sales in inventory 49 36 Total asset turnover 4.1 2.7 Debt ratio 67 46 Times interest earned 3.11 10.8 Profit margin 20.0 225 Gross profit ratio 14.0 13.5 21 days 5 times 70 days 2.3 times 35 % 50 times 14 % 18%

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