Hello. I want it to be explained longly and very detailed. I want to know the formulas of a,b,c,d,e,f,g, and h. I want to see every computation. Thank you!

Questions: 1- As a financial analyst, you are told it is considering the acquisition of the Company X. The Company X requests that you prepare certain financial statistics and analysis for Year 5 and Year 4 using the financial statements below: Balance Sheet December 31, Year 5 and Year 4 Year 5 Year 4 Assets $ 1,387,000 $ 1,610,000 510,000 4,075,000 7,250,000 125,000 13,570,000 3,669,000 7,050,000 218,000 12,324,000 Current assets Cash Marketable securities Accounts receivable, less allowance for bad debts Year 5, $125,000; Year 4, $110,000 Inventories, at lower of cost or market Prepaid expenses Total current assets Plant and equipment, at cost Land and buildings Machinery and equipment. Total plant and equipment Less: Accumulated depreciation Total plant and equipment-net Long-term receivables. Deferred charges Total assets 13,500,000 9,250,000 22,750,000 13,470,000 9,280,000 250,000 25,000 $23,125,000 13,500,000 8,520,000 22,020,000 12,549,000 9,471,000 250,000 75,000 $22,120,000 Liabilities and Shareholders' Equity $ 2,950,000 1,575,000 875,000 500,000 5,900,000 $ 3,426,000 1,644,000 750,000 500,000 6,320,000 Liabilities and Shareholders' Equity Current liabilities Accounts payable Accrued expenses Federal taxes payable Current maturities on long-term debt Total current liabilities Other liabilities 5% sinking fund debentures, due January 1, Year 16 ($500,000 redeemable annually) Deferred taxes on income, due to depreciation Total other liabilities Shareholders' equity Preferred stock, $1 cumulative, $20 par, preference on liquidation $100 per share (authorized: 100,000 shares; issued and outstanding: 50,000 shares) Common stock, $1 par (authorized: 900,000 shares; issued and outstanding: Year 5, 550,000 shares; Year 4,500,000 shares) Capital in excess of par value on common stock Retained earnings... Total shareholders' equity Total liabilities and shareholders' equity. 5,000,000 350,000 5,350,000 5,500,000 210,000 5,710,000 1,000,000 1,000,000 550,000 3,075,000 7,250,000 11,875,000 $23,125,000 500,000 625,000 7,965,000 10,090,000 $22,120,000 Statement of Income and Retained Earnings For Years Ended December 31, Year 5 and Year 4 Year 5 Year 4 Revenues Net sales Royalties Interest $41,700,000 25,000 $48,400,000 70,000 30,000 $48,500,000 Total revenues $41,725,000 Costs and expenses Cost of sales Selling, general, and administrative Interest on 5% sinking fund debentures Provision for federal income taxes $31,460,000 12,090,000 275,000 2,315,000 $46,140,000 $ 2,360,000 $29,190,000 8,785,000 300,000 1,695,000 Total costs and expenses $39,970,000 $ 1,755,000 Net income 7,965,000 $10,325,000 6,760,000 $ 8,515,000 50,000 50,000 Retained earnings, beginning of year Subtotal Dividends paid Preferred stock, $1.00 per share in cash Common stock Cash$1.00 per share Stock(10%)50,000 shares at market value of $50 per share. Total dividends paid. Retained earnings, end of year 525,000 500,000 2,500,000 $ 3,075,000 $ 7,250,000 $ 550,000 $ 7,965,000 Additional Information: 1. Inventory at January 1, Year 4, is $6,850,000. 2. Market prices of common stock at December 31, Year 5 and Year 4, are $73.50 and $47.75, respectively. 3. Cash dividends for both preferred and common stock are declared and paid in June and December of each year. The stock dividend on common stock is declared and distributed in August of Year 5. 4. Plant and equipment disposals during Year 5 and Year 4 are $375,000 and $425,000, respectively. Related accumulated depreciation is $215,000 in Year 5 and $335,000 in Year 4. At December 31, Year 3, the plant and equipment asset balance is $21,470,000, and its related accumulated depreciation is $11,650,000. Required: Compute the following financial ratios and figures for both Year 5 and Year 4. Identify and discuss any significant year-to-year changes. Show your supported computations! At December 31: a. Current ratio. b. Acid-test ratio. c. Book value per common share. For year ended December 31: d. Gross profit margin ratio. e. Days to sell inventory. f. Times interest earned. g. Common stock price-to-earnings ratio (end-of-year value). h. Gross capital expenditures. 3