You will use the financial statements that were provided (see attached excel spreadsheet) for 2017 to do a ratio analysis for his company. Please complete Part 1 and Part 2.

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!!