Compute the following ratios for 20X6 and 20X5.

(a) Current ratio.

(b) Inventory turnover. (Inventory on 12/31/X4 was 652.)

(c) Profit margin ratio.

(d) Return on assets. (Assets on 12/31/X4 were 3,480.)

(e) Return on common stockholders' equity. (Stockholders' equity on 12/31/X4 was 1760.)

(f) Debt to total assets ratio.

(g) Times interest earned.

MBALN-612 Financial and Managerial Accounting Midterm Examination- Financial Statement Analysis Guidelines for assignment This is an individual examination Ground your answer in relevant theory Plagiarism and reproduction of someone else's work as your own will be penalized Make use of references, where appropriate - Use Harvard or APA referencing method. Late submissions are not accepted Structural elements should include an introduction, main body, and a conclusion Weight - 40% Word count guidance : part 1 - 500 +/10%. Business report wordage should be 1500 +/10% Type of assignment: Excel or Word Start / Finish : Week 3 - 4 Learning Outcome Assessed: 1,2,3,4 Submit one single document/file. Part 1 - Financial Analysis The condensed financial statements of Aries Company for the years 20X5 and 20X6 are presented below. Aries Company Balance Sheet December 31 20X6 20X5 Cash and Equivalents 60 160 Accounts Receivable (net) 720 640 1080 800 60 80 1920 1680 1520 1400 20 20 770 640 4230 3740 520 420 Long-Term Liabilities 1720 1440 Stockholders' Equity--common 1990 1880 4230 3740 Current Assets Inventory Prepaid Expenses Total Current Assets Property, Plant and Equipment Investments Intangibles and Other Assets Total Assets Current Liabilities Total Liabilities and Stockholders' Equity Aries Company Income Statements For the Years Ended December 31 20X6 20X5 Sales Revenue 6,000 5,740 Cost and Expenses Cost of Goods Sold 4920 4720 Selling and Administrative Expenses 560 500 Interest Expense 160 140 Total Costs and Expenses 5,640 5,360 Income Before Income Tax 360 380 Income Tax Expense 140 150 Net Income 220 230 Compute the following ratios for 20X6 and 20X5. (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/X4 was 652.) (c) Profit margin ratio. (d) Return on assets. (Assets on 12/31/X4 were 3,480.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/X4 was 1760.) (f) Debt to total assets ratio. (g) Times interest earned. Critically evaluate your ratio calculations and conclude on the current state of the company. Word count 500 (+/- 10%) Part 2 - Performance Evaluation Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretical explanation of any ratio analysis. No need to recalculate ratios, often the financial reports provides these. Attach the company financial statements as an appendix to your statement as reference to your work. Present your findings in a Management Business Report wordage should be 1500 +/10%