Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared and along with the ratios that you have calculated prepare an analysis of the companys financial position. Identify two strengths and two weaknesses in the company. Make two recommendations to improve the companys financial position. Be specific in each of the recommendations and use the ratios to support your analysis. The length should be no more than two paragraphs long.

Sally's Sunglasses Inc Comparative Balance Sheet December 31,2016 and 2015 2016 2015 Increase or (Drecrease Assets Current Assets ount Percent 28.57% 90,000.00 130,000.00 135,000.00 25.000.00 70,000.00 90.000.00 80,000.00 20.000.00 12.000.00 272,000.00 20,000.00 40.000.00 55,000.00 5,000.00 12,000.00 108,000.00 as 0 Accounts Receivable Inventory (sunglasses) aid Insurance 0 68.75% 25.00% -100.00% 39.71% Total Current Assets 380.000.00 Plant and Equipment Equipment Accumulated Depreciation - Equipment Total Propertv, Plant and Equipment Total Assets 300,000.00 -75,000.00 225,000.00 605,000.00 250,000.00 -50,000.00 200,000.00 472,000.00 50,000.00 -25,000.00 25,000.00 133,000.00 20.00% 50.00% 12.50% 28.18% Current Liabilities Accounts Payable Notes Payable Salaries Payable Federal Income Taxes Payable Total Currents liabilities 75,000.00 20,000.00 40,000.00 10,000.00 145,000.00 40,000.00 60.000.00 30,000.00 25,000.00 155,000.00 35.000.00 -40,000.00 10,000.00 -15,000.00 -10,000.00 87.50% -66.67% 33.33% -60.00% -6.45% Long term Liabilities 7.000.00 192,000.00 23.000.00 13,000.00 62-16% 6.77% 60,000.00 Total Liabilities 205,000.00 Stockholders Equity Common Sock, 3 Par Paid-In Capital in Excess of Par Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholders Equity 34.62% 175,000.00 25,000.00 200,000.00 400,000.00 605,000.00 130,000.00 150,000.00 280,000.00 472,000.00 45,000.00 25,000.00 50,000.00 120,000.00 133,000.00 42.86% 28.18%