Finance data of Adams Stores, Inc. for the year ending 2021 and 2020

Items	2021	2020
Sales	$6,034,000	$3,432,000
Cash	7,282	57,600
Other Expenses	519,988	358,672
Retained Earnings	32,592	203,768
Long-term debt	723,432	323,432
Cost of goods sold	5,528,000	2,864,000
Depreciation	116,960	18,900
Short-term investments	0	0
Gross Fixed Assets	1,202,950	491,000
Interest Expenses	136,012	43,828
Shares outstanding	100,000	100,000
Market Price of stock	2.25	8.50
Accounts Receivable	632,160	351,200
Accounts payable	524,160	145,600
Inventory	1,287,360	715,200
Notes Payable	636,808	200,000
Accumulated Depreciation	263,160	146,200
Accruals	489,600	136,000

Tax Rate 40% 40%

Stock Price $5.50 $7.25

Finance data of Adams Stores, Inc. for the year ending 2021 and 2020

Items	2021	2020
Sales	$6,034,000	$3,432,000
Cash	7,282	57,600
Other Expenses	519,988	358,672
Retained Earnings	32,592	203,768
Long-term debt	723,432	323,432
Cost of goods sold	5,528,000	2,864,000
Depreciation	116,960	18,900
Short-term investments	0	0
Gross Fixed Assets	1,202,950	491,000
Interest Expenses	136,012	43,828
Shares outstanding	100,000	100,000
Market Price of stock	2.25	8.50
Accounts Receivable	632,160	351,200
Accounts payable	524,160	145,600
Inventory	1,287,360	715,200
Notes Payable	636,808	200,000
Accumulated Depreciation	263,160	146,200
Accruals	489,600	136,000

Tax Rate 40% 40%

Stock Price $5.50 $7.25

1. Based on your financial statements (from Part 1), calculate the following ratios for the two years. Show all your calculations in good form. Show your formulas. If you use excel, each calculation need to show the excel formula

Current ratio

Quick ratio

Inventory turnover (times)

Accounts receivable turnover (days)

Total asset turnover (times)

Debt ratio

Times interest earned

Gross profit margin

Net profit margin

Return on total assets

Return on equity

P/E ratio

Return on equity using DuPont Analysis

2. Comments on each of the ratios by comparing 2021 to 2020 ratios. In your comments, explain the meaning of each of the ratios.

3. Find industry ratios for 2021 similar to the ones you calculated. Compare the industry ratios you found to the ratios you calculated. Based on the industry average, how is Adams Stores, Inc. doing financially?