Delighted by their apparent success, Fido's Food Mart wanted to ensure that they really understood what was going on in their organization. They sat down with their accountant and asked for the following ratios to be computed and explained: Required: Reference the Financial Statements from Project No. 11 1. Debt-to-Assets Ratio (Solvency Ratio) a. Compute the ratio. Be sure to include a label, if it applies. b. Write a full sentence to explain the nature of this as it applies to Fido's Food Mart. c. Write a full sentence to provide suggestions to move the ratio in a better direction. 2. Quick Ratio (Liquidity Ratio) a. Compute the ratio. Be sure to include a label, if it applies. I b. Write a full sentence to explain the nature of this as it applies to Fido's Food Mart. c. Write a full sentence to provide suggestions to move the ratio in a better direction. 3. Gross Profit Percentage (Profitability Ratio) a. Compute the ratio. Be sure to include a label, if it applies. b. Write a full sentence to explain the nature of this as it applies to Fido's Food Mart. c. Write a full sentence to provide suggestions to move the ratio in a better direction. 4. Net Profit Margin (Profitability Ratio) a. Compute the ratio. Be sure to include a label, if it applies. b. Write a full sentence to explain the nature of this as it applies to Fido's Food Mart. c. Write a full sentence to provide suggestions to move the ratio in a better direction. Fido's Food Mart Adjusted Trial Balance December 31, 20XX Account Title Debits Credits Cash 56,996 Accounts Receivable 9,512 Less: Allowance for Doubtful Accounts 1,260 Inventory 20,390 Supplies 650 Prepaid Insurance 320 Equipment 30,550 Vehicle 12,250 Less: Accumulated Depreciation - Equipment and Vehicle 1,780 Accounts Payable Interest Payable Unearned Revenue (Gift Cards) Dividends Payable Bonds Payable (mature 12/31/XX) Common Stock (200 shares @ $210/share) 62,128 400 275 2,200 12,000 46,200 Additional Paid In Capital - Common Stock 300 Dividends Declared Treasury Stock 2,200 1,125 Retained Earnings Sales Revenue Less: Sales Discount Cost of Goods Sold 0 134,725 40 64,330 Operating Expenses 34,840 Bad Debt Expense 3,260 Bank Charges 15 Depreciation Expense 1,780 Insurance Expense 160 Interest Expense 400 Rent Expense Supplies Expense Wages Expense Totals 261,268 261,268 5,750 1,200 15,500