1. Fern Company

fiscal years ended December 31, 2021 and 2022:

($ in thousands)

Year ended 2021 Year ended 2022

Total Liabilities $ 55,164 $ 74,467

Total Assets 232,792 275,909

Net Income 30,736 34,343

Revenue (Net Sales) 136,819 161,857

Current Assets 135,676 152,578

Current Liabilities 34,620 45,221

Compute the following for both years (2022 & 2021) using Excel

Return on Assets (Use ending Total Assets) Total expenses Debt ratio Profit Margin Current ratio

2) Explain the following to the companys board of directors using Word

Is return on assets (ROA) satisfactory for Fern assuming an industry average of 12% return? Explain. Analyze and comment on the companys current ratios for the two years. How does Ferns 2022 current ratio compare to the industry average of 3.5? Explain. In which year was Fern better able to pay short-term debt obligations? Explain.