Reference no: EM132481646
Balance Sheet ($000) Carson Electronics, Inc. BGT Electronics, Inc.
Cash $2,000 $1,460
Accounts receivable 4,470 5,970
Inventories 1,530 2,520
Current assets $8,000 $9,950
Net fixed assets 15,990 24,980
Total assets $23,990 $34,930
Accounts payable $2,450 $5,030
Accrued expenses 1,050 1,450
Short-term notes payable 3,470 1,550
Current liabilities $6,970 $8,030
Long-term debt 8,010 4,040
Owners' equity 9,010 22,860
Total liabilities and owners' equity $23,990 $34,930
?(Financial statement? analysis) Carson? Electronics' management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found? here:
a. Calculate the following ratios for both Carson and? BGT:
Current ratio
Times interest earned
Inventory turnover
Total asset turnover
Operating profit margin
Operating return on assets
Debt ratio
Average collection period
Fixed asset turnover
Return on equity
b. Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that? Carson's management might focus on to improve its operations.
a. Calculate the following ratios for both Carson and? BGT:
?Carson's current ratio is. ?(Round to two decimal? places.)