ACCOUNTING EXERCISE You have recently inherited $698,019.11 from a long-forgotten relative and would like to invest a portion of it in the stock market. You have researched the (fictional) Healthwize Company and Love their product! The stock closed today at $57.78 and has been trending upward. The HEALTHWIZE Company is in the news daily. HEALTHWIZE has earned the nickname SBVE (Safest & Best Vaccine Ever) as a result of their new Coronavirus vaccine that promises to be extremely profitable. It has proved to be 99.9% effective five hours after swallowing one small pill. Although a few clinical trial participants have experienced deleterious results, the overwhelming majority of participants experienced no lasting effects. This solution covers all COVID variants. Previously, you listened to stock selection "tips" from your bowling team buddies. Unfortunately, their advice has resulted in significant losses to your stock portfolio (BTW. your bowling team is also dead last in your bowling league. However, with the information that you have learned in Professor Johnson's MGMT110 class, you now have the knowledge to investigate HEALTHWIZE's financial and managerial operations and make better stock market selections, based on sound financials. Attached is HEALTHWIZE's Balance Sheet and Income Statement for your use in this exercise. YOUR ASSIGNMENT IS TWOPOLD: 1. Review the enclosed Balance Sheet and Income Statement to calculate the nine financial ratios below for the years 2019 and 2020. 2. Based on your financial and management analysis, describe why you would or would not invest in HEALTHWIZE. NOTE: The complementary Accounting slides in your Course Content Folder contain all of the appropriate ratios and decision points. SHOW ALL MATH Display your raties in clear to understand and easy to follow format. For example... Net Prolit Margin Net Income Sales 78.516/1104786.072 or 70% 1. Current Ratio 2. Acid-Test Ratio 3. Gross Margin 4. Debt to Equity 5. Inventory Turnover Ratio 6. Return on Equity 7. Return on Assets 8. What is the ratio result determining if HEALTHWIZE is effectively controlling overhead costs? 9. What is the ratio result to determine if HEALTHWIZE is effectively controlling product costs? USE THE TABLE FORMAT BELOW TO PROVIDE YOUR NINE RESPONSES RATIO Nathroti Mai Tn Current Ratio etc. FORMULA Net Income Sales MATH 38516 110486 RESULT 2.072 or 22