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​(Financial statement​ analysis)  Carson​ Electronics' management has long viewed BGT Electronics as an industry leader and...

​(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:  LOADING.... 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 nothing. ​(Round to two decimal​ places.)

Carson​ Electronics, Inc.

Balance Sheet​ ($000)

BGT​ Electronics, Inc.

Balance Sheet​ ($000)

Cash

$ 1 comma 950$1,950

$ 1 comma 510$1,510

Accounts receivable

4 comma 4904,490

6 comma 0206,020

Inventories

1 comma 5301,530

2 comma 5002,500

Current assets

$ 7 comma 970$7,970

$ 10 comma 030$10,030

Net fixed assets

15 comma 98015,980

24 comma 98024,980

Total assets

$ 23 comma 950$23,950

$ 35 comma 010$35,010

Accounts payable

$ 2 comma 550$2,550

$ 4 comma 990$4,990

Accrued expenses

1 comma 0101,010

1 comma 5501,550

​Short-term notes payable

3 comma 4603,460

1 comma 5101,510

Current liabilities

$ 7 comma 020$7,020

$ 8 comma 050$8,050

​Long-term debt

7 comma 9707,970

3 comma 9903,990

​Owners' equity

8 comma 9608,960

22 comma 97022,970

Total liabilities and​ owners' equity

$ 23 comma 950$23,950

$ 35 comma 010$35,010

Carson​ Electronics, Inc.

Income Statement​ ($000)

BGT​ Electronics, Inc.

Income Statement​ ($000)

Net sales​ (all credit)

$ 47 comma 950$47,950

$ 70 comma 030$70,030

Cost of goods sold

( 35 comma 980 )(35,980)

( 42 comma 050 )(42,050)

Gross profit

$ 11 comma 970$11,970

$ 27 comma 980$27,980

Operating expenses

( 8 comma 040 )(8,040)

( 11 comma 970 )(11,970)

Net operating income

$ 3 comma 930$3,930

$ 16 comma 010$16,010

Interest expense

( 1 comma 180 )(1,180)

( 500 )(500)

Earnings before taxes

$ 2 comma 750$2,750

$ 15 comma 510$15,510

Income taxes

​(40 %40%​)

( 1 comma 100 )(1,100)

( 6 comma 204 )(6,204)

Net income

$ 1 comma 650$1,650

$ 9 comma 306$9,306

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