ACCOUNTING ANALYTICS For Target Company (10 points)

Calculate the ROA for the most recent year.

Disaggregate ROA into two parts as shown in Exhibit 1.7 (page 1-19). Interpret the two ratios: PM & ATO.

Show the interplay between productivity and profitability of the company as shown in Exhibit 1.8. Compare it to your closest competitor or industry average. Show the chart within the report.

How does this interplay of PM & ATO link back to the company's business model?

For the most recent year, calculate inventory turnover, accounts receivable turnover, and accounts payable turnover. Convert these turnovers in days.

Calculate debt/equity of the company. Has the company assumed more or less financial risk over the past three years? Interpret your answer.