Given the Balance Sheet and Income Statement for Simmons Maintenance

Given the balance sheet and income statement for Simmons Maintenance Company, compute the ratios below. The "right answer" refers to the question of whether a particular ratio for Simmons is better or worse than the industry average. $\begin{array}{lccc}& \text { Ratios } & \text { Industry } & \text { Circle the } \\\text { Ratio } & \text { for Simmons } & \text { Average } & \text { right answer }\\\text { Profit margin } &\underline{\quad\quad}& 17.5 \% & \text { better worse } \\\text { Return on investment } &\underline{\quad\quad}& 20.8 \% & \text { better worse } \\ \text { Return on equity } &\underline{\quad\quad}& 35 \% & \text { better worse } \\ \text { Receivables turnover } &\underline{\quad\quad}& 4.4 \mathrm{x}& \text { better worse } \\\text { Avg. collection period }&\underline{\quad\quad} & 68.0 \text { days } & \text { better worse } \\ \text { Inventory turnover }&\underline{\quad\quad} & 3.5 \mathrm{x} & \text { better worse } \\ \text { Capital asset turnover } &\underline{\quad\quad}& 2.4 \mathrm{x} & \text { better worse } \\\text { Total asset turnover }&\underline{\quad\quad} & .76 \mathrm{x} & \text { better worse } \\\text { Current ratio }&\underline{\quad\quad} & 1.28 & \text { better worse } \\\text { Quick ratio } &\underline{\quad\quad}& .85 & \text { better worse } \\ \text { Debt to total assets } &\underline{\quad\quad}& .45 & \text { better worse } \\ \text { Times interest earned }&\underline{\quad\quad} & 12.0 \mathrm{x} & \text { better worse } \\\text { Fixed charge coverage } &\underline{\quad\quad}& 3.6 \mathrm{x} & \text { better worse } \\ \end{array}$