Instruction
You will use the financial statements that were provided for 2017 to do a ratio analysis for his company. You are to show the formulas for each of the ratio analyses 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.
• 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
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.