answer letter (e) only. Thank you

a. Provide a brief definition of a Ratio Analysis. b. Briefly explain the three (3) categories of ratio. C. State and show the difference of Profitability Ratio, Efficiency Ratio, and Financial Health d. Briefly share when do we need to do the FRA and why is it important? e. Using the Balance Sheet and Income Statement from the previous chapters, show computations applying the different ratios used under the three (3) categories of ratio. Note: There are several ratios used under the 3 categories. You may only show 1 example of quantitative or mathematical application for each ratio). Using the following statements compute for the company's profitability, operating efficiency, and financial health ratios for 2014 CAF Store Statement of Financial Position C&F Store As of December 31 Statement of Comprehensive Income 2014 As of December 31 2013 2014 2013 Cash 110.000 87.400 Accounts Receivable 90,000 89.920 Sales 810,000 Inventory 686.000 129.000 218.500 Cost of Goods Sold 348,300 301,750 Prepaid Rent 12.000 4.370 Delivery Van Gross Profit 461,700 384,250 550,000 493,810 Operating Expenses 234.900 205.800 Total Assets 891.000 874,000 Interest Expense 40.500 17,150 Net Income 185.300 161,300 Accounts Payable 75,000 67.298 Loan Payable 400,000 393,300 Anistle Cruz, Capital 416,000 413,402 Total Liabilities & Equity 891.000 874,000 Profitability Name of Rule Formula Gross pro Gross Proft Mergin Computation Operating income Morin Operating Income Net Sales Net Protargin Net Income Net Sales Return on Assets Total Assets Return on Asset Net Income Average Asset Name of Ratio Formula Computation Retumon Assets EBIT Total Assets Retomo Assets EBIT Average Assets Net Income Remonty Return on Equity Net Income Average Equity Name of Ratio Computation Efficiency Formula Net Sales Average Asset Asset Turnover Net Sales Fixed Asset Turnover Inventory Turnover Average Fixed Asset Cost of Good Sold Average Inventory 365 Days in Inventory Accounts Receivable Turnover Inventory Turnover Net Sales Average Accounts Receivable 365 Days in Accounts Receivable Accounts Receivable Turnover 25 Name of Ratio Computation Formula Solvency Measures Total Debt Equity Total Debt Debt to Equity Ratio Debt Ratio Total Assets Total Equity Equity Ratio Financial Health Interest Coverage Ratio Total Assets Operating Income Interest Expense Liquidity Current Assets Current Liabilities Current Ratio Quick Assets Quick Ratio Current Liabilities 26