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Chris Guthrie was recently hired by S\&S Air, Inc., to assist the company with its financial planning and to evaluate the company's performance. Chris graduated from college five years ago with a finance degree. He has been employed in the finance department of a Fortune 500 company since then. S\&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the company's products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models; the Birdie, which sells for $53,000, and the Eagle, which sells for $$8,000. Although the company manufactures aircraft, its operations are different from commercial aircraft companies. S\&S Air builds aircraft to order. By using prefabricated parts, the company can mplete the manufacture of an airplane in only five weeks. The company also receives a deposit on each order, as well as another partial payment before the order is complete. In contrast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed. Mark and Todd have provided the following financial statements. Chris has gathered the industry ratios for the light airplane manufacturing industry. Answer the following questions. Q1. Using the financial statements provided for S\&S Air, calculate each of the ratios listed in the table for the light aircraft industry. Current ratio = Quick ratio = Total asset turnover = Inventory turnover = Total debt ratio = Debt-equity ratio = Profit margin = Return on assets = Return on equity = Q1=.50 Median =1.43 Q1=.21 Median =.35 Q1=.68 Median =.85 Q1=4.89 Median =6.15 Q1=.44 Median =.52 Q1=.68 Median =1.08 Q1=4.05% Median =5.10% Q1=6.05% Median =10.53% Q1=9.93% Median =18.14% Q3=1.89 Q3=.62 Q3=1.38 Q3=10.89 Q3=.61 Q3=1.56 Q3=7.15% Q3=13.21% Q3=26.15% Q2. Compare the performance of S\&S Air to the industry. For each ratio, comment on why it might be viewed as positive or negative relative to the industry

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