Compute the following financial ratios for each of those years: age of accounts receivable, age of inventory, gross profit percentage, profit margin percentage, return on assets, return on

equity, current ratio, debt-to-equity ratio, and the quality-of earnings ratio.

Then please answer: What major red flags, if any, were present in Take-Twos financial statements given these ratios? Explain.

Exhibit 1Take-Two Interactive Software, Inc. Financial Highlights 1998-2000 (000s Omitted) Note: The following financial statement amounts for 1997 were included in Take-Two's 1999 Form 10-K. Source: Form 10-Ks filed with the Securities and Exchange Commission by Take-Two Interactive Software, Inc