Question

^{Need the debt ratio for each, thanks,
(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 a. Calculate the following ratios for both Carson and BGT X Data Table Current ratio Times interest earned Inventory turnover Total asset turnover Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity BGT Electronics, Inc. Carson Electronics, Inc. Balance Sheet ($000) Operating profit margin Balance Sheet ($000) b. Analyze the differences you observe between the two firms. Comment on what you view as weakn $2.050 Cash $1,470 rations Accounts receivable 4,470 5,970 a. Calculate the following ratios for both Carson and BGT 1,470 2,500 Inventories Carson's current ratio is 1.14 Current assets $7,990 $9,940 (Round to two decimal places.) Net fixed assets 16,020 25,030 BGT's current ratio is 1.24 (Round to two decimal places.) Total assets $24,010 $34.970 Carson's times interest earned is 3.46 times. (Round to two decimal places.) Accounts payable $2,550 $5,010 Accrued expenses 1,460 980 BGT's times interest earned is 32.02 times. (Round to two decimal places.) Short-term notes payable 3,460 1,500 Carson's inventory turnover is 24.52 times. (Round to two decimal places.) Current liabilities $6,990 $7,970 Long-term debt Owners' equity 7,950 4,000 BGT's inventory turnover is 16.8 times. (Round to two decimal places.) 23,000 9,070 Total liabilities and owners' equity $24,010 $34,970 Carson's total asset turnover is 1.99 (Round to two decimal places.) BGT Electronics, Inc. Income Statement ($000) Carson Electronics, Inc. Income Statement ($000) BGT's total asset turnover is 2. (Round to two decimal places.) Net sales (all credit) Cost of goods sold Gross profit $47,960 $70,000 Carson's operating profit margin is 8 . (Round to one decimal place.) (36,050) (42,000) BGT's operating profit margin is 22.8 %. (Round to one decimal place.) $11,910 $28,000 Operating expenses (8,030) (11,990) Carson's operating return on assets is 16.1%. (Round to one decimal place.) Net operating income $3,880 $16,010 Interest expense (1,120) (500) BGT's operating return on assets is 45.7 %. (Round to one decimal place.) Earnings before taxes $2,760 $15,510 Income taxes (35%) (966) %. (Round to one decimal place.) (5,429) Carson's debt ratio is Net income $10,081 $1,794 Enter your answer in the answer box and then click Check Answer Print Done 11 parts remaining}

Answer 1

Debt-Ratio for Carson = Total Liabilities Total Assets X 100 = $ 6990 + $ 7950 $ 24010 X 100 14940 - X100 24010 | 62.2 % Debt-Ratio for BGT Electronics = Total Liabilities x 100 Total Assets = $7970+ $4000 x 100 $ 34970 11 970 34970 - X100 34.2 %