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 (11 marks available). (Select the option "Neither F or U" if the option Favorable or Unfavorable is not applicable.)

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 (11 marks available). (Select the option "Neither F or U" if the option Favorable or Unfavorable is not applicable.) 2020 2019 Trend Industry Average 1.6:1 Comparison to Industry Average Current ratio 1.20 : 1 1.09:1 Quick ratio 0.89:1 0.75 : 1 1.1:1 Accounts receivable turnover 16 17 16 times 27 24 21 days 5.4 5.6 5 times Days' sales uncollected Inventory turnover Days' sales in inventory Total asset turnover Debt ratio 52 39 70 days 4.4 3.0 2.3 times 70 49 35 % Times interest earned 3.4 4.8 50 times 14.5 15.5 14 % Profit margin Gross profit ratio 14.0 13.0 18 %