Answered>Order 4122
PART 1
You are to show the formulas for each of the ratio analysis listed below (you do not need to do all of the calculations, however), and choose the 3 that you feel will provide the most information to the owner. Using the financial statements provided, do the calculations for those 3 ratios, and show your work in an Excel document. (see attached Excel spreadsheet)
- Current ratio
- Acid-test (quick) ratio
- Debt ratio
- Inventory turnover
- Accounts receivable turnover
- Return on net sales
- Return on total assets
- Return on common stockholder’s equity
- Earnings per share
Part 2
In a memo to the owner, Jim Davis, explain the results of your ratio analysis. Your memo should be a minimum of 400 words in APA style.
Thank you!!