Finance data of Adril 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

Instructions:

Compute the following ratios for two years. You may use Excel to compute your ratios.

1. Debt ratio

2. Gross profit margin

3. Free cash flow

4. Times interest earned

5. Accounts receivable turnover

6. Inventory turnover

B. Prepare a DuPont Analysis of ROE for two years, including computations of

1. Return on Sales

2. Asset Turnover

3. Return on Assets

4. Financial Leverage

5. Return on Equity

C. Evaluate the ratio trends. Your evaluation should be consistent with your calculations for the two (2) years.

give a report evaluating trends in all of the above ratios. Discuss whether your company's profitability, efficiency, liquidity, and solvency are improving or deteriorating. Suggest ways the company can improve the ratios that show problems.