In this project, you will assess the financial health of the business in question, using financial analysis tools in your…

In this project, you will assess the financial health of the business in question, using financial analysis tools in your…

In this project, you will assess the financial health of the business in question, using financial analysis tools in your textbook. Please make your work neat and show all computations. For some of your computations, you will be comparing your results with averages of businesses within your business’s industry. For assistance in obtaining industry averages, see the Reference Desk at the library. Attach the sheet(s) obtained which show industry averages to this paper. In some cases, the industry averages sheet may not have the specific ratio, but you may be able to compute the ratio using the information on the industry average sheet. If no industry average is given, but you are able to compute the industry average, please do so. What is the name of the business you are reporting on? A popular analysis technique is a trend analysis (also known as Horizontal Analysis), in which you analyze the change over time of specific financial data. This is shown on page 694 of your textbook. Refer to your income statement, prepare a trend analysis of Sales and of Net Income (or Net Loss) for all the years reported. Also, state what page in your annual report has your income statement. In your opinion, are the trends in Sales and Net Income good or bad? Please briefly explain your opinion. The Current Ratio is defined on page 59. Please give a brief definition of the current ratio here. From the balance sheet, compute the current ratio for all years presented. What is the industry average for the current ratio? Is your company’s current ratio weak or strong? Briefly explain your opinion. The Debt to Total Assets Ratio is defined on page 60. Please give a brief definition of the debt to total assets ratio here. From the balance sheet, compute the debt to total assets ratio for all years presented. What is the industry average for this ratio? Is your company’s current ratio weak or strong? Briefly explain your opinion. The Profit Margin Ratio is defined on page 247. Please give a brief definition of the Profit Margin ratio here. From the income statement, compute the Profit Margin ratio for all years presented. What is the industry average for this ratio? Is your company’s profit margin ratio weak or strong? Briefly explain your opinion. The Inventory Turnover Ratio is defined on page 296. Please give a brief definition of the Inventory Turnover ratio here. From the financial statements, compute the Inventory Turnover ratio, and the Days in Inventory, for the most recent year presented. What is the industry average for this ratio? Is your company’s inventory turnover ratio weak or strong? Briefly explain your opinion.