Financial ratio data is listed below for Gallery of Dreams. Construct a list of strengths and weaknesses for the firm after analyzing the ratios. Gallery of Dreams Ratios Industry 2015 2014 2013 Ratio 4.48x 1.47x 4.06x 1.18x 3.48x 0.96x 9 days 2.50x 0.80x 11 days 2.30x 15 days 17.50x 2.80x 62.00% Current Quick Average collection period Inventory turnover Days payable outstanding Fixed asset turnover Total asset turnover Debt ratio Long term debt to total capitalization 16 days 15 days 1.24x 12 days 9.09x 1.37x 8 days 1.19x 11 days 9.74x 1.50x 29.47% 8.85x 1.82x 39.1 7% 1.67x 34.04% 22.33% 14.23x 18.91% 14.09% 22.02x 25.53% 9.93x 8.69x 31.10% 8.06% 4.32% 9.21% 11.34% 19.00x Times interest earned Fixed charge coverage Gross profit margin Operating profit margin Net profit margin Return on investment Return on equity 4.59x 59.21% 22.05% 11.89% 17.97% 24.14% 4.47x 59.39% 2 1.86% I 1.00% 18.28% 27.51% 4.25x 58.52% 20.52% 10.97% 18.35% 29.88%

Ange in supply or (ii) a movement along the supply curve. a. during a real estate boom that causes house prices to rise, more homeowners put their houses up for sale. b. many strawberry farmers open temporary roadside stands during harvest season, even though prices are usually low at that time. c. immediately after the school year begins, fewer young people are available to work. fast-food chains must raise wages, which represent the price of labor, to attract workers. d. many construction workers temporarily move to areas that have suffered hurricane damage, lured by higher wages. e. since new technologies have made it possible to build larger cruise ships (which are cheaper to run per passenger), caribbean cruise lines have offered more cabins, at lower prices, than before. 2. in the following three situations, the market is initially in equilibrium. after each event described below, does a surplus or shortage exist at the original equilibrium price? what will happen to the equilibrium price as a result? a. in 2010 there was a bumper crop of wine grapes. b. after a hurricane, florida hoteliers often find that many people cancel their upcoming vacations, leaving them with empty hotel rooms. c. after a heavy snowfall, many peop