3) Based on the above ratio analysis, what conclusions/observations can you make regarding the financial situation of this company?

Safeway Stores, Inc. Comparative Statements of Income Q5. Using the information in the Balance Sheet and Profit and Loss Statement below, calculate the following ratios and answer the questions (8 points in total) Safeway Stores Comparative Balance Sheets Increase or Decrease Assets 2019 2018 Amount Percentage Current Assets: $ $ % Cash and short-term investments 74,442 75,574 (1,132) (1.50) Receivables 105,166 91,642 13,524 14.76 Merchandise inventories 1,563,244 1,433,254 129,990 9.07 Prepaid expenses and other current assets 118,537 128,676 (10,139) (7.88) Total Current Assets 1,861,389 1,729,146 132,243 7.65 Sales Cost of sales Gross Profit Operating and administrative expenses Operating Profit Interest expense Other income (loss) Income before provision for income taxes Provision for income taxes Net Income Net Income per share 1) Calculate the following Liqudity Ratios 2019 2018 $ $ 19,642,201 18,585,217 15,004,5471 14,249,843 4,637,654 4,335,3741 4,214,443 3,920,736 423,211 414,6381 7.03 151,263 134,270 26,874 20,565 298,822 300,933 113,811 117,630 185,011 183,303 3.12 3.26 Increase or Decrease Amount Percentage $ 1,056,984 5.69 754,704 5.30 302,280 6.97 293,707 7.49 8.573 0,378 2.07 10,993 16,993 12.66 6,309 30.68 (2,111) (0.70) (3,819) (3.25) 1,708 0.93 (0.14) (4.29) Property Land Buildings Leasehold improvments Fixtures and equipment Transport equipment Property under capital lease Current ratio in year 2018 = 236,876 210,427 345,001 305,006 557,504 459,711 2015 2,023,914 1,789,136 186,485 173,576 1,144,4091 1,155,493 4,494, 1891 4,093,349 1,894,3331 1,731, 138 2,599,856 2,362,211 16,588 16,557 59,396 66,449 4,537,229 4,174,363 26,449 39,995 97,793 234,778 12,909 (11,084) 2002 400,840 163, 195 237,645 31 (7,053) 362,866 12.57 13.11 21.27 13.12 7.44 (0.96) ) 9.79 9.43 10.06 0.19 (10.61) 8.69 Current ratio in year 2019 = Less: Accumulated depreciation and ammortization Total property, net Excess of cost over net assets acquired Other Assets Total Assets Quick ratio in year 2018 = Quick ratio in year 2019 = Percentage 2) Calculate the following Solvency Ratios Debt to Equity ratio in year 2018 = 2019 $ 44,913 45,427 48,274 1,038,268 167,739 193,509 20,431 1,558,561 2018 $ 50,1561 45,841 24,723 1,017,094 163,021 154,373 43,081 1,498,289 Increase or Decrease Amount $ % (5,243) (10.45) (414) 1*1497 (0.90) 23,551 95.26 21,174 2.08 4,718 2.89 39,136 25.35 (22,650) (52.58) 60,272 4.02 Debt to Equity ratio in year 2019 = Times interest Earned Ratios in year 2018 = Times interest Earned Ratios in year 2019 = 2) Calculate the following Profitability Ratios Liabilities and Stockholders' Equity Current Liabilities Notes Payable Current obligation under capital leases Current maturities of notes and debentures Accounts Payable Accrued Salaries and wages other accrued expenses Income Taxes Payable conne lake Total Current Liabilities Long-term Debt Obligations under capital leases Notes and Debentures Total Long-term debt Ph. Accrued claims and other liabilities Total Liabilities Stockholders' Equity Common Stock Additional Paid-in Capital - Citi Cumulative translation adjustment Retaind Earnings Total Stockholders' Equity Total Liabilities and stockholders' Equity 746,178 646,532 1,392,710 116,935 3,068,206 765,307 422,362 1,187,669 98,051 2,784,009 (19,129) 224,170 205,041 18,884 284,197 (2.50) 53.08 17.26 19.26 10.21 Return on Invested Capital (ROIC) ratio in year 2018 = Return on Invested Capital (ROIC) ratio in year 2019 = Return on Owner's Equity (ROE) ratio in year 2018 = 99,756 97,933 246,964 222,851 (155,994) (114,087) 1,278,297 1,183,657 1,469,023 1,390,354 4,537,229 4,174,3631 1,823 24,113 (41,907) 94,640 78,669 362,866) 1.86 10.82 36.73 8.40 5.66 8.69 Return on Owner's Equity (ROE) ratio in year 2019 = Profit as Percentage of Sales ratio in year 2018 = Profit as Percentage of Sales ratio in year 2019 =