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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,

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 available income statements and two years of balance sheets for each company. 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.

THIS SITE WONT LET ME UPLOAD THE FINANCIAL STATEMENT FOR THIS QUESTION.

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