e Business

This practice set is designed in two parts. The first part provides a review of the financial ements of a corporation selling inventory. Megan's Mugs, a corporation, whose primary operation is sale of mugs to on$-$line customers and retailers in the market. Each student will prepare a financial ysis and Statement of Cash Flow for the company. In the second part, Megan's Mug decides to start ucing the mug and selling them directly on the Internet and to customers.

All cases of academic dishonesty will be reported to the Office of Student Life.

t One Instructions

inancial information for the past two years $(2022$ and $2023)$ is provided. Megan's Mugs collection is $30$ days and the benchmark for the inventory is $45$ days. Using an Excel spreadsheet cation, such as Microsoft Excel, and the information from the previous years, provide the followir

Prepare a Statement of Cash Flows for the current year using the indirect method. Using horizontal analysis, prepare a Comparative Balance Sheet.

Using vertical analysis, prepare an Income Statement.

Using the textbook, calculate the ratios set out below:

a$.$ Current Ratio for years $2022$ and $2023.$

b$.$ Quick ratio for years $2022$ and $2023.$

c$.$ Accounts Receivable Turnover for the year $2023.$

d$.$ Number of Days Sales in Receivables for year $2023.$

e$.$ Inventory Turnover for the year $2023.$

f$.$ Number of Days Sales in Inventory for year $2023.$

g$.$ Ratio of Liabilities to Stockholders' Equity for the years $2022$ and $2023.$

h$.$ Return on Total Assets for the year $2023.$

i$.$ Return on Stockholders' Equity for the year $2023.$

j$.$ Earnings Per Share for the years $2022$ and $2023.$

ancial statements provided in this practice set can be downloaded from Blackboard. R ions provided before downloading. An example of a Statement of Cash Flow has bee nd of the Practice Set. Download the Excel files $($Income Statement and Balance She and calculate the ratios for the vertical and horizontal analysis.

Acting as an accounting advisor to the firm, prepare a memo in which you analyze statements you prepared in step two and prepare an analysis of the company's fin position. Identify two strengths and two weaknesses in the company. Make two recommendations to improve the company's financial position. Be specific in ea recommendations and use the ratios to support your analysis. The length should