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2 0 2 1 financial data table [ [ Solo Inc., ] , [ 2 0 2 1 Financial Data, ] , [ Credit

2021 financial data
\table[[Solo Inc.,],[2021 Financial Data,],[Credit Sales - December 31,510,255.00],[Cash Sales - December 31,55,000.00],[Other Income - December 31,61,254.00],[Interest Income-December 31,5,640.00],[Depreciation - December 31,32,155.00],[Rent - December 31,16,895.00],[Wages & Salaries - December 31,206,523.00],[Advertising - December 31,15,000.00],[Insurance - December 31,23,525.00],[Interest - December 31,3,690.00],[Income Taxes - December 31,45,785.00],[Inventory - December 31,245,000.00],[Accounts Receivable - December 31,98,564.00],[Prepaid Expenses - December 31,9,875.00],[Furniture & Equipment - December 31,206,547.00],[Accum Depreciation (Furniture & Equipment)- December 31,160,595.00],[Income Tax Receivable-December 31,5,497.00],[Accounts Payable-December 31,107,891.00],[Salaries Payable - December 31,35,000.00],[Accrued Liabilities - December 31,14,899.00],[State Tax Payable - December 31,3,514.00],[Capital Stock - December 31,450,000.00],[Net cash provided by operating activities - December 31,258,900.00],[Net cash used by investing activities - December 31,154,587.00],[Net cash used by financing activities - December 31,96,987.00],[Cash - December 1,482,184.00],[Cost of Goods Availale for Sale - December 31,460,993.00],[Retained Earnings - December 1,210,511.00]]2022 and 2023 financial ratios
Note: Assume the following:
The financial information provided to you is the only information available.
The liquidity ratios provided in this project are the only available for
decision- making.
Question 6
Based on the financial statements of Solo Inc., perform a trend analysis for the liquidity
ratios for 2021,2022 and 2023. Interpret the results of the trend/ratios (i.e., what do the
trend and ratios tell vou about the company?)Solo Inc. is a publicly listed furniture company. The company is well known for manufacturing furniture for major hospitals and organizations in the United States and Europe. The company has experienced significant growth in recent years due to the increased demand for its quality products. Although the company is very profitable and is determined to maintain its profitability trend, its strategic focus in the last three years has been to manage its liquidity. The company has consulted you to analyze its financial data to determine if it is managing its liquidity effectively.
Additional Information Provided
The following additional information has been provided:
2020 selected account balances
\table[[Selected Financial Data -2020],[Current Assets,$750,000.00,December 31],[Current Liabilities,$350,000.00,December 31],[Accounts Receivable,$151,000.00,December 31],[Inventory,$196,000.00,December 31],[Total Assets,$253,000.00,December 31],[Total Income,$550,000.00,December 31],[Total Expenses,$615,000.00,December 31]]
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