Question: 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.
Information related to above question is enclosed below:
Attachment:- Book1.rar