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 Industry Average 1.6:1 Comparison to Industry Average 1.16:1 1.07 : 1 16 1.05 : 1 0.92:1 25 43 7.6 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 39 7.8 35 48 40 66 1.1:1 16 times 21 days 5 times 70 days 2.3 times 35 % 50 times 14% 18 % 3.0 19.5 13.0 2.6 55 10.3 22.0 12.5
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