Hi, I need help for the last part about the analysis and I am curious if my calculations on the first photo are right. Thanks in advance.
=60425771249917 TOTTUTTE OU SE TO TorproCUC. PROTOCLIVETES TITUUE SE products, as well as doing research and development of environmentally friendly products. Calculate the following in the cells indicated (boxed). 10 11 Current ratio 2019 10.03 Current ratio 2018 0.68 A/R Turnover 2019 (in days) 1126 These turnover ratios will require long formulas so be careful with the logic you create Inventory turnover 2019 (in days) 210.3 19 Gross profit margin 2019 8 Gross profit margin 2018 Debt to total assets 2019 0.09 8 Answer the following four questions in the spaces provided. Be concise and adhere to the character limits provided. Remember that you need to explicitly relate the calculations above to your analysis and responses. Do not change font size or le Does Rocky Mountain Chinook Products have healthy liquidity? Is it improving or deteriorating? (425 character limit) + Financial Analysis Rocky Mountain Chinook Products Statement of Operations (Expressed in Canadian dollars) Year ended April 30 2019 Year ended April 30, 2018 1,249,977 (645,720) 604,257 483,669 (278,883) 204,786 Sales Cost of goods sold Gross margin Sales expenses Salaries and payroll expenses Commission Traveling costs Advertising and promotion Other expenses Total sales expenses Administrative costs Rent Repair and maintenance Office costs Management fees Professional fees Consulting fees Research and development Depreciation 180,699 96,906 21,486 107,202 70,506 476,889 55,047 30,417 1,281 145,254 14.064 246,063 101,280 15,615 236,331 339,828 441,027 5.928 70,125 34,587 26,766 15.297 23,664 216,501 338,331 6,981 1,244,721 627,540 Total administrative expenses Finance costs Interest and bank charges Credit card fees Total finance costs Net loss 84,348 6,033 90.381 (1.207.734) 41.601 1.986 43,587 712,404) Rocky Mountain Chinook Products Statement of Financial Position (Expressed in Canadian dollars) as at April 30, 2019 2018 April 30, 2018 ASSETS 330,843 226.059 Current assets Cash Accounts receivable Prepaids Inventory Total current assets 4,455,060 544,902 251,940 427 557 5,679,450 316 484 873.385 Non-current assets Land and building Equipment Other Total non-current assets 961 221 5.403 931,221 13,323 3,585 948,129 971.480 Total assets 6,627 588 1 944 325 LIABILITIES Current liabilities Accounts payable Accrued liabilities Bank line of credit Bank loans Total current abies 414,822 1215 676.581 1.215 489,264 75.803 566,082 1.275,578 Non-current les Other Total non-cument tables 1,500 Total libes SHAREHOLDERS' EQUITY Common shares Prefemed shares 8.412.468 1.709.9TO Total que 2.811.46211291723 6.000.000 $ % 0.09 123 Default (Ca... - 11 - B 100% - fx | +604257/1249977 D H Does Rocky Mountain Chinook Products have healthy liquidity? Is it improving or deteriorating? (425 character limit) X 8 What is your assessment of the company's turnover ratios? What risks do they face? Remember to consider the industry they operate in. (425 character limit) Using the financial statements as a whole, and any of the ratios to support your answer identify two things the company can do to improve performance in one of the following areas: liquidity, solvency or profitability. (425 character limit) Would this be a good time to invest in Rocky Mountain Chinook Products? Why or why not? Financial Analysis
