FIN621 Financial StatementAnalysis :: Case Study:: Sui Southern Gas Company (SSGC) is Pakistan's leading integratedgas Company. The company is engaged in the business of transmission and distribution of natural gas besides construction of high pressure transmission and low pressuredistribution systems. You have been given the financial statements of the Sui SouthernGas Company for the year 2008 under the below link. Financial statements are alsoavailable under the head Downloads on LMS of FIN621. Financial statements-2008 (Do NOT take consolidated statements presented under this link aswe want you to consider stand alone financial statements 2008 of the company) You are required to analyze the financial statements of thiscompany with maximum of your knowledge. At the end you will be able to know the techniques, applicationof Financial Statement Analysis; similarly this practice will help youfor the Final Project. Calculate the following ratios; you are required to provide theformulas, calculations and interpretation of each ratio. Make sure yourinterpretation will be brief and explanatory along with each ratio. Part 1 Liquidity Ratios: (3x2=6 marks) 1. Acid Test Ratio/Quick ratio 2. Sales to working Capital 3. How working capital does help the financial analyst? Part 2 Solvency Ratio: (4x2=8 marks) 1. Debt-to-Equity Ratio 2. Time Interest Earned Ratio 3. Fixed Charge Coverage Ratio 4. Define difference between both ratios (Time Interest Earned & Fixed Charge Coverage)? To be very precise mention why dowe calculate both? Part 3 Profitability Ratios: (8x2=16 marks) 1. Gross Profit Margin 2. Operating Profit Margin Return on sales 3. Pretax Margin 4. Net Profit MarginFIN621 Financial Statement Analysis Virtual University of Pakistan 5. Return on Equity (ROE) 6. Return on Assets (ROA) Return on Investment (ROI) 7. DuPont Return on Assets 8. What is the need for calculating DuPont Return on Assets whenwe already have Return on Assets ratio calculated? Part 4 Activity Ratios: (5x2=10 marks) 1. Inventory Turnover 2. Accounts Receivable Turnover 3. Accounts payable turnover 4. Average collection period 5. Average payment period Bookish interpretations are not required. Be specific to thecompany given in the assignment.