Financial Ratios Analysis

Using the already calculated ratios in the attached Excel file and the company’s information in word files in zip folder, complete the following report:

Prepare a report detailing the information you have researched as well as discussing the implications of what the findings mean regarding strategy creation. 1
Complete Part II to Construct the Financial Statements.
Income Statement
Revenue (Sales)
Cost of Goods Sold
Gross Profit
Operating Expenses
EBIT (Operating Income)
Interest Expense
Non-Recurring Events
EBT (Pretax Income)
Tax
Net Income
31/12/2021
$6,420,400
2,547,900
3,872,500
3,000,400
872,100
174,300
0
697,800
58,500
639,300
31/12/2022
$5,856,700
2,404,800
3,451,900
3,022,100
429,800
159,200
0
270,600
146,600
124,000
Balance Sheet
Assets
Cash and Short Term Investments
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Property Plant & Equipment
Goodwill
Intangibles
Other Long-Term Assets
Total Assets
31/12/2021
31/12/2022
Percent Change
$983,400
1,500,400
552,100
692,200
3,728,100
421,100
3,419,600
1,172,000
1,297,000
10,037,800
$498,600
1,132,400
676,800
691,300
2,999,100
422,800
3,470,100
814,600
1,589,300
9,295,900
-49%
-25%
23%
0%
-20%
0%
1%
-30%
23%
-7%
Liabilities
Accounts Payable
Other Current Liabilities
Total Current Liabilities
Long-Term Debt
Other Long-Term Liabilities
Total Liabilities
800,100
1,655,800
2,455,900
3,824,200
694,600
6,974,700
650,900
1,538,800
2,189,700
3,711,200
533,100
6,434,000
-19%
-7%
-11%
-3%
-23%
-8%
Equity
Common Stock
Retained Earnings
Treasury Stock
Paid in Capital & Other
Total Equity
110,100
4,257,800
(3,534,700)
2,192,700
3,025,900
110,100
4,071,400
(3,634,400)
2,285,700
2,832,800
0%
-4%
3%
4%
-6%
NA
Percent Change
-9%
-6%
-11%
1%
-51%
-9%
NA
-61%
151%
-81%
Total Liabilities and Equity
10,000,600
9,266,800
-7%
Current Ratio
Quick Ratio
Total Liabilities-to-Total-Assets Ratio
Long-Term Debt-to-Equity Ratio
Times-Interest-Earned Ratio
Inventory Turnover
Fixed Assets Turnover
Total Assets Turnover
Accounts Receivable Turnover
Average Collection Period
Gross Profit Margin %
Operating Profit Margin %
ROA %
ROE %
Historical Ratios
31/12/2021
31/12/2022
1.52
1.37
1.29
1.06
0.69
0.69
1.26
1.31
5
3
4.61
3.55
15.25
13.85
0.64
0.63
4
5
85.30
70.57
60%
59%
14%
7%
6%
1%
21%
4%