The following selected information is available for AB Volvo, headquartered in Sweden, for three fiscal years (in SEK [Swedish krona] millions):

Instructions
(a) Calculate the current ratio, gross profit margin, and profit margin for each year.
(b) Comment on whether the ratios have improved or deteriorated over the three years.
(c) Compare the 2010 ratios calculated in (a) with the following industry averages: current ratio 1.6:1; gross profit margin 17.5%; and profit margin 3.4%. Are Volvo's ratios better or worse than those of its industry?

2010 147,139 124,059 264,749 201,797 2009 154,945 122,581 2 Current assets Current liabilities Net sales Cost of goods sold Profit (loss) 176,038 155,257 218,361 304,642 186,167 238,928 11,212 (14,685) 10,016