Shelzo Inc.,a manufacturer of construction equipment is considering the purchase of one of its suppliers,Raritron Industries.The purchase has been given preliminary approval by Shelzo's board of directors,and several discussions have taken place between the management of both companies.Raritron has submitted financial data for the past several years.Shelzo's controller has analyzed Raritron's financial statements and prepared the following ratio analysis comparing Raritron's performance with the industry averages.

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The Answer of Shelzo Inc.,a manufacturer of construction equipment is considering the purchase of one of its suppliers,Raritron Industries.The purchase has been given preliminary approval by Shelzo's board of directors,and several discussions have taken place between the management of both companies.Raritron has submitted financial data for the past several years.Shelzo's controller has analyzed Raritron's financial statements and prepared the following ratio analysis comparing Raritron's performance with the industry averages.