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Question

an analysis of last year's financial statements produced the following results.

current ratio 3.6

quick ratio 2.2

days sales outstanding 78.0 days

inventory turnover 4.4

fixed asset turnover 6.4

operating profit margin 11.9%

net profit margin 6.1%

return on assets 8.8%

return on equity 13.7%

debt ratio 35.5%

times-interest-earned 9.3x

payout ratio 41.4%

use the following data to compute the comparable financial ratios for next fiscal year. has the firm's financial position changed?

current assets

cash and shortterm investments $ 14,657,000

accounts receivable 71,873,000

inventory 56,372,0001

plant and equipment 26,881,000

long-term investments and other assets 20,606,000

total assets $190,389,000

current liabilities $ 37,481,000

long-term debt 17,895,000

equity 135,013,000

total liabilities and equity $190,389,000

sales $254,553,000

cost of goods sold 149,903,000

selling, administrative, and other expenses 69,609,000

earnings before interest and taxes 35,041,000

interest 2,529,000

taxes 13,972,540

net income $ 18,540,000

earnings per share $4.13

dividends per share $1.80

1 average inventory = $56,530,000

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