Complete ratio analysis, recognizing significant differences Home Health, Inc., has come to Jane Ross for a yearly financial checkup. As a first step, Jane has prepared a complete set of ratios for fiscal years 2018 and 2017 She will use them to look for significant changes in the company's situation from one year to the next a. To focus on the degree of change, calculate the year to your proportional change by subtracting the year 2018 ratio from the year 2019 ratio, then dividing the difference by the year 2018 ratio. Multiply the result by 100. Presen the positive or negative sign. The result is the percentage change in the ratio from 2018 to 2019. Calculate the proportional change for the raios shown here b. For any ratio that shows a year-to-year difference of 10% or more state whether the difference is in the company's favor or not c. For the most significant changes (25% or more), look at the other ratios and cite at least one other change that may have contributed to the change in the roto that you are discussing a. To focus on the degree of change, calculate the year-to-year proportional change for the ratios shown here. Liquidity Ratios Proportional Difference Current ratio % (Round to two decimal places) Liquidity Ratios Proportional Difference Quick to * Round to two decimal places) Proportional Difference Activity Ratios Inventory turnover D (Round to two decimal places.) Proportional Difference Activity Ratios Average collection period Round to two decimal places.) Proportional Difference Activity Ratios Total assemover Round to two decimal places.) Proportional Difference Debt Ratio * Round to two decimal places.) Debt Proportional Difference Debt Ratio fik to select your answers Proportional Difference Profitability Ratios Gross profit margin (Round to two decimal places) Proportional Difference Profitability Ratios Operating profit margin Os Round to two decimal places) Proportional Difference Profitability Ratios Nel protag % Round to two decimal places) Proportional Difference Profitability Ratios Return on tots % Hound to two decimal places) Proportional Difference Profitability Ratios Return on monuity DA Round to two decimal proces Proportional Deference Market Rates Price learnings ratio s Round to two decimal places) Proportional Derence Market Ratios Marketbook Ls (Round to two decimal places) Click to select your ans) Proportional Difference Company's Favor Liquidity Ratios Quick rato - 10.04% (Select from the drop down merus.) Proportional Difference Company's Favor - 19.42% - 28.27% Activity Ratios Inventory turnover Average collection period Total asset turnover (Select from the drop-down menu) 47.10% Proportional Difference Company's Favor Debt Ratio Debito 50.00% (Select from the drop-down menus) Proportional Difference Company's Favor Profitability Ratios Operating profit margin Click to select your answer(s) O A. the accounts receivable decreased due to lower sales. B. there has been a change in credit terms. O c. there has been quicker collection OD. all of the above. The total asset turnover has increased by 47.10%. This could be because: (Select the best answer below.) A. sales have increased. OB. total assets have decreased. O c. neither of the above. OD. both A and B. The debt ratio has increased by 50.00%. This could be because: (Select the best answer below.) O A. there is an increase in debt. B. there is a decrease in assets. c. neither of the above. OD, both A and B Click to select your answer(s). The return on total assets has increased by 42.98%. This could be because: (Select the best answer below.) A. total assets have decreased. B. the earnings available for common stockholders has increased. C. current assets have decreased. OD. all of the above. The return on common equity has increased by 107.39%. This could be because: (Select the best answer below.) A. the earnings available for common stockholders has increased. B. common stock equity has decreased. C. retained earnings have decreased. D. all of the above. Click to select your answer(s). i Data Table in order to copy the contents of the data table below into a (Click the icon here spreadsheet.) Home Health, Inc. Financial Ratios 2018 Ratio 2019 si Current ratio Quick ratio Inventory turnover Average collection period Total asset turnover Debt ratio Times interest earned ratio Gross profit margin Operating profit margin Net profit margin Return on total assets Return on common equity Pricelearnings ratio Market/book ratio 3.24 2.49 12.77 42.8 days 1.38 0.42 3.98 70% 15% 8.2% 11.4% 20.3% 10.5 1.36 2.96 2.24 10.29 30.7 days 2.03 0.63 3.88 67% 17% 8.0% 16.3% 42.1% 9.6 1.24 - Th hasil Print Done