Case Study:

You work in the mergers and acquisitions department of a large conglomerate who is looking to invest in a retail business. Two companies, Fashion Forward and Dream Designs, are the final two options being considered. You have the most recent availableincome statements and two years of balance sheetsfor each company below.

Compute the following ratios for each company:

• Profit Margin Ratio
• Return on Assets
• Current Ratio
• Quick Ratio
• AR Turnover Ratio
• Average Collection Period
• Inventory Turnover Ratio
• Average Sales Period
• Debt to Equity Ratio
• For this assignment:Compute all required amounts and explain how the computations were performed
• Evaluate the results for each company and explain what each ratio means
• Compare and contrast the companies.
• Based on your analysis:
• recommend which company the organization should pursue
• Thoroughly support your conclusion, including what other factors should be considered
• Be specific.

BUS 5130 Written Amigoment F Financial Incoma Statement Balance Sheets Fuhlon Forward Fashion Forward Fashion Forward Drum Daiigni Dram Design 1231 2018 12/31/2018 12/31/2017 12/1/2018 Current Anisha 12/31/2017 2.000,0 4,520 010 Cash and Cash Equivalents 1,708,000 Non-Credit Sales Accounts Incriwable 140,010 Total Newenun 5400 010 275010 Inventory 112,000 15010 Other Current Asicba 34000 120,500 Cost of Sales 1400/080 3.340600 Total Current Assets 1,397000 1,284 ,000 2 380 900 1,100 00 2,190/010 Property, Plant and Equipment 634 000 Goodwill 1,150600 Operating Expinam Other Long-Term Amirta 100,750 Ammarch and Deenlopment Total Asmita Selling, General, and Administration 2,147000 2,805,000 4,531,250 4,430,000 Total Operating Expanica Accounts Payable Earning Before Interest and Tears #75 010 540,010 Short-Term Debi 34 000 Other Current Utbildn Interest Expense Total Current Labilitis 1,170,000 1,045,000 1,6735,750 1,675,900 Income Before Tix 300 010 Long-Term Debit 15 000 120500 130600 Income Tax Expanin (37,500) Other Long-Term Liabilities 75,000 Net Income 145,000 196,900 212,500 185010 Total Liabilities 1,145,000 1,120.000 1,501 250 1,270,000 Stockholders Equity Common Stock 500 000 Preferred Stock 403 340 Astained Earning 1,340,500 Total Stockholders Equity 1,402 000 1,684000 2,480,000 Total Liabilities and Stockholders Equity 2.747/000 4,301 250 4,4307000