8. Write a memo to your client ACCT 1115 to communicate your findings by explaining the ratios, their results and any suggestions for improvements if needed.

Liquity Ratios 2019 Rounded 2018 Rounded Current Ratio 1.6365 1.64 1.3135 1.31 Current Assets / Current Liabilities (Current Assets - Inv - Prepaid Expenses/Current Liabilities Quick Ratio 0.9172259725 0.92 .774193548 0.77 Activity Ratios 1 1.00 1.066666667 1.07 320.1854676 320.19 273.75 273.75 Accounts Receivable Turnover Average Collection Period Inventory Turnover Days to Sell Inventory 6.099084209 6.10 3.143333333 3.14 Net Credit Sales / Average Accounts Receivable 365 / Accounts Receivable Turnover Cost of Goods Sold / Average Inventory 365 days / Inventory Turnover Credit Purchases / Average Accounts Payable 365 days / Accounts Payable Turnover 59.84505009 59.85 116.1187699 116.12 Accounts Payable Turnover 1.261664431 1.26 1.454545455 1.45 Accounts Payable Payment Period 289.3003805 289.30 250.9375 250.94 0.6488079992 1.810881346 1.81 0.65 0.39 0.3935012442 .665013525 0.67 Net Debt/Shareholders Equity Net Debt/Shareholders Equity + Net Debt Long Term liab./Total shareholders equity Total liab./Total assets 0.3375479128 0.34 .942126514 0.94 0.4094045122 0.41 .665013525 0.67 Solvency Ratios Debt to Equity Net Debt as a % of tot. cap. a . Long term debt to equity Debt ratio (Financial leverage) Profitability Ratios Gross Margin Profit Margin Return on Equity Return on Assets 0.2363267464 0.24 .3387096774 0.34 0.002082296495 0.00 0731767180 0.07 Gross Margin / Sales Revenue Net Income / Sales Revenue Net Income / Average Total Shareholders Equity Net Income / Average Total Assets 0.006380674551 0.01 .280888290 0.28 0.01006567796 0.01 0644932014 0.06