financial analysis for ABC company amanufacturer of safety helmets to assess the companys performance in terms of debt management and profitabillity using the comparative balance sheet and income statement for the last $2$ years $1.$ You decide first to assess the company$$s performance in terms of debt management and profitability $.$ Compute the followings for both this year and last year :

a$.$ The times interest earned ratio

b$.$ The debt to equity ratio

c$.$ The gross margin percentage

d$.$ The return on total assets $($the total assets at the beginning of last year were $12,960,000$ $ $)$

e$.$ The return on equity $($ Stockholder$$s equity at the beginning of last year totaled $9,048,000$ $ $.$ There has been no change in common stock over the last two years $)$

f$.$ Is the company$$s financial leverage positive or negative $?$ Explain

$2.$ You decide next to assess the company$$s stock market performance $.$ Assume that ABC stock price at the end of this year is $72$ $ $/$share and that at the end of last year it was $40$$$.$ For both this year and last year $,$ compute :

a$.$ Earnings per share

b$.$ The dividend yield ratio

c$.$ The dividend pay out ratio

d$.$ The price earning ratio $.$ How do investors regard ABC company as compared to other companies in the industry $?$ Explain

e$.$ The book value per share of common stock $.$ Does the difference between market value per share and book value per share suggest that the stock at its current price is a bargain $?$

$3.$ You decide finally to assess the company$$s liquidity and asset management $.$ For both this year and last year $,$ compute :

a$.$ Working capital

b$.$ The current ratio

c$.$ The quick ratio

d$.$ The average collection period $($ The account receivable balance at the beginning of last year totaled $1,560,000$ $$)$

e$.$ The average sales period $.($ The inventory at the beginning of last year totaled $1,920,000$ $ $)$

f$.$ The operating cycle

g$.$ The total asset turnover $($ The total assets at the beginning of last year totaled $12,960,000$ $ $)$

$4.$ Prepare a brief memo that summarizes how ABC company is performing relative to its competitors