5.If the industry in which Carter is a member has an average current ratio of 1.9, determine if, on December 31, 2010, Carter is more or less solvent than the average firm in its industry as measured by its current ratio.
6.If the industry in which Carter is a member has an average return on equity of 22%, determine if in 2010, Carter is more or less profitable than the average firm in its industry.
7.The industry in which Carter is a member has an average return on assets of 18%. Carter reported no interest expense during 2010. Determine if Carter is more or less profitable in 2010 than the average firm in its industry.
8.If the industry in which Carter is a member has an inventory turnover of 11 times, determine if in 2010, Carter is more or less efficient at converting inventory into sold units than the average firm in its industry. Explain what information this ratio provides you.
9.The industry in which Carter is a member has an average debt/equity ratio of 0.83. Determine if, as measured by the debt/equity ratio on December 31, 2010, Carter is taking full advantage of investing borrowed capital in its operations relative to that of the average firm in its industry. Explain.
10.Washington Company has current assets, current liabilities, and long-term liabilities of $8,000, $2,000, and $5,000, respectively at the end of 2010. How much cash can Washington use to acquire equipment and retain a current ratio of at least 2.0?