Accounting Part One Instructions The financial information for the past two years (2020 and 2019) is provided. Sally's Sunglasses collection policy is 30 days and the benchmark for the inventory is 35 days. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Current Ratio 2020 and 2019 b. Quick ratio 2020 and 2019 c. Accounts Receivable Turnover 2020 d. Number of Days Sales in Receivables 2020 (Company policy states 30 days in receivables) e Inventory Turnover 2020 h f. Number of Days Sales in Inventory 2020 (Company policy states 50 days to turn over inventory) 8. Ratio of Liabilities to Stockholders' Equity 2020 n. Rate earned on Total Assets 2020 Rate earned on Stockholders' Equity 2020 1. Earnings Per Share 2020 and 2019 The financial statements provided in this practice set can be downloaded from Blackboard. An example of a Statement of Cash Flow has been provided at the end of the Practice Set. Download the files and copy and paste them into an Excel spreadsheet (Income Statement and Balance Sheet) and add a column and calculate the ratios for the vertical and horizontal analysis. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and step three and along with the ratios that you have calculated prepare an analysis of the company's financial position. Identify two strengths and weaknesses in the company Make two recommendations to improve the commanvis Accounting Part One Instructions The financial information for the past two years (2020 and 2019) is provided. Sally's Sunglasses collection policy is 30 days and the benchmark for the inventory is 35 days. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Current Ratio 2020 and 2019 b. Quick ratio 2020 and 2019 c. Accounts Receivable Turnover 2020 d. Number of Days Sales in Receivables 2020 (Company policy states 30 days in receivables) e Inventory Turnover 2020 h f. Number of Days Sales in Inventory 2020 (Company policy states 50 days to turn over inventory) 8. Ratio of Liabilities to Stockholders' Equity 2020 n. Rate earned on Total Assets 2020 Rate earned on Stockholders' Equity 2020 1. Earnings Per Share 2020 and 2019 The financial statements provided in this practice set can be downloaded from Blackboard. An example of a Statement of Cash Flow has been provided at the end of the Practice Set. Download the files and copy and paste them into an Excel spreadsheet (Income Statement and Balance Sheet) and add a column and calculate the ratios for the vertical and horizontal analysis. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and step three and along with the ratios that you have calculated prepare an analysis of the company's financial position. Identify two strengths and weaknesses in the company Make two recommendations to improve the commanvis