Financial statements, which are a major component of a companys financial analysis, provide useful information about a company. These statements assess the financial strengths and weaknesses of the company; analyse non-financial and financial performance; compare the companys performance with its past performance, its competitors and the industry as a whole; and provide useful information for decision-making and strategic planning.

Instructions: Your team was hired to conduct an independent assessment of the performance of Sargassum Caribbean Incorporated (SCI). SCI is an agriculture startup that manufactures and supplies several types of fertiliser and soil amendment products.

In your assessment of the companys performance as at December 31, 2020, please answer the following questions:

1. Explain the types of financial statements, what they are used for, and their roles in financial analysis:

1. Balance Sheet
2. Income Statement
3. Statement of Retained Earnings
4. Statement of Cash Flows

2. Assess the performance of SCI using the ratios below. Provide a thorough analysis that analyses the results as well as the usefulness of each ratio. In your responses, include any recommendations that may help the company to improve its performance:

1. Current Ratio
2. Quick Ratio
3. Debt Ratio
4. Return on Assets
5. Return on Equity
6. Receivables Turnover
7. Fixed Assets Turnover
8. Total Assets Turnover
9. Profit Margin
10. Gross Profit Margin

3. Identify the limitations of ratio analysis and identify other alternative measures that can assess a companys performance.

4. Create a slide presentation that presents the key elements of your report to SCI management. (This should be created as a separate document using PowerPoint, Canva or any other slide presentation software.)