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Compute each of the following ratios for 2016 and 2017 and indicate whether each ratio was getting "better" or "worse" from 2016 to 2017 and was "good" or "bad" compared to the Industry Avg for 2016. (round all numbers to 2 digits past the decimal place)

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Ratios	2016		2017		Enter Better or Worse		Industry Avg	Enter "Good" or "Bad" compared to Industry Avg
Profit Margin	1		11		21		0.11	31
Current Ratio	2		12		22		1.90	32
Quick Ratio	3		13		23		1.12	33
Return on Assets	4		14		24		.26	34
Debt to Assets	5		15		25		.55	35
Receivables turnover	6		16		26		18.00	36
Avg. collection period*	7		17		27		21.20	37
Inventory Turnover**	8		18		28		8.25	38
Return on Equity	9		19		29		0.25	39
Times Interest Earned	10		20		30		8.15	40

*Assume a 360 day year
**Inventory Turnover can be computed 2 different ways. Use the formula listed in the text
(the one the text indicates many credit reporting agencies generally use) Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: 2016 2017 Sales $ 975,000 $ 1,072,500 less Cost of Goods Sold: 325,000 346,125 Gross Profit 650,000 726,375 Operating Expenses 575,000 609,500 Earnings before Interest & Taxes 75,000 116,875 Interest exp 25,000 31,000 earnings before Taxes 50,000 85,875 Taxes 20,000 34,350 Net Income $ 30,000 $ 51,525 Balance Sheet info: 12/31/2016 12/31/2017 Cash 60,000 $ 63,600 Accounts Receivable 80,000 $ 84,000 Inventory 110,000 $ 126,500 Total Current Assets $ 250,000 $ 274,100 Fixed Assets (Net) $ 300,000 $ 312,000 Total Assets $ 550,000 $ 586,100 Current Liabilities $ 130,000 $ 149,500 Long Term Liabilities $ 150,000 $ 170,000 Total Liabilities $ 280,000 $ 319,500 Stockholder's Equity $ 270,000 $ 266,600 Total Liab & Equity: $ 550,000 $ 586,100

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