Case 2 Current ratio= Current assets/ current liabilities
Current ratio = $3,138,220 / $2,162,080 Current ratio = 1.45

Quick ratio= (current assets- Inventory)/ current liabilities
Quick ratio = ($3,138,220 – 1,238,500) / $2,162,080 Quick ratio = 0.88

Cash ratio= cash/ current liabilities
Cash ratio = $365,040 / $2,162,080 Cash ratio = 0.17 Total asset turnover= sales/ total assets
Total asset turnover = $20,077,000 / $15,453,900 Total asset turnover = 1.30

Inventory turnover= CGS/ Inventory
Inventory turnover = $14,985,000 / $1,238,500 Inventory turnover = 12.10

Receivables turnover= Sales/ Accounts receivable
Receivables turnover = $20,077,000 / $1,534,680 Receivables turnover = 13.08

Total debt ratio= (total assets-total equity)/ total assets
Total debt ratio = ($15,453,900 – 9,466,820) / $15,453,900 Total debt ratio = 0.39

Debt-equity ratio= Total debt/ total equity
Debt-equity ratio = ($2,162,080 + 3,825,000) / $9,466,820 Debt-equity ratio = 0.63

Equity multiplier= 1+ Debt equity ratio
Equity multiplier = 1 + 1.63 Equity multiplier = 1.63

Times interest earned= earnings before interest/ interest expense
Times interest earned = $2,038,000 / $362,000 Times interest earned = 5.63

Cash Coverage = (EBIT + Depreciation)/ Interest
Cash coverage = ($2,038,000 + 655,000) / $362,000 Cash coverage = 7.44

Profit margin= net income/ sales
Profit margin = $1,005,600 / $20,077,000 Profit margin = 5.01%

Return on assets=net income/ total assets
Return on assets = $1,005,600 / 15,453,900 Return on assets = 6.51% Return on equity= net income/ total equity
Return on equity = $1,005,600 / $9,466,820 Return on equity = 10.62%

2. I would not chose Boeing as an aspirant company and the reason for that is S&S are in the light airplane industry Boeing makes big