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Further analyze the financial ratios and trend analysis to evaluate and make management decisions. Develop a business decision that evaluates a growth or improvement opportunity

  • Further analyze the financial ratios and trend analysis to evaluate and make management decisions.
  • Develop a business decision that evaluates a growth or improvement opportunity for the company.
  • Using analysis, determine whether it should be accepted or rejected by the organization.
  • Prepare a strategic plan to the board of directors of the company that includes analysis of financial information and recommendations for increased profitability.
  • As part of your analysis, be sure to evaluate risks and opportunities as well as alternatives to the proposed plan.

The accounting period was the month of may we completed journal entries, trial balance, financial statements if you can see my prior questions the one before this once included the journal entries.

  • Profit Margin Ratio=Net Income/Net Sales

    134,196 /215,800=62%

    Return On Assets=Net Income/Averaged Total Assets

    134,196/748871=17%

    Return on Equity=Net Income/Share Holder Equity

    134196/530196=25%

  • Current Ratio=Current Assets/Current liabilities

    453871/218675=2.07

    Quick Ratio=total current assets-inventory-prepaid expenses/current liabilities

    453871-0-34000/218675=1.92

    Cash Ratio=Cash+cash Equivalents/Total Current Liabilities

    358,931/218675=1.64

  • Debt to equity Ratio=Total Liabilities/Total Share holders' Equity

    218675/530196=41%

    Equity Ratio=Total Equity/Total Assets

    530196/748871=71%

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