1- The Vanguard Group, Inc.

has compiled the following financial statements and

comparative financial ratios for the year-end review.
Answer
c. Overall financial performance of the Vanguard Group is poor. Although debt is in line with the
industry, activity and profitability are below expected performance levels. The accounts
receivable are not being collected on time.
These two factors contribute to the poor asset turnover ratio. All profitability ratios are poor in
comparison to the industry. The poor profitability, combined with poor asset turnover, results in
a low return on equity.

2- Bauman Company’s total current assets, total current liabilities, and inventory for each
of the following 4 years follow: