Sam's sandwich delivery

Given the profit loss (income statement) and balance sheet for Sam's Sandwich Delivery (Table 4-8, page 121 of your textbook), answer the following:

1. Calculate the following ratios: current, quick, accounts receivable turnover, fixed asset turnover.

2. Using the inventory figure on the balance sheet as average inventory, calculate the inventory turnover ratio.

3. Calculate the debt-to-equity ratio, debt-to-total asset ratio, and operating profit margin ratio.

4. Perform a vertical analysis of the income statement.

5. Perform a vertical analysis of the balance sheet.

6. Based on your analysis, would you consider investing in Sam's Sandwich Delivery?