Hi there!

I have this research paper that is due in the next few days. Would you be able to give me an answer for those questions?

Thanks

K.

Financial Statement Analysis Case RNA Inc. -manufactures a variety of consumer products. The company's founders have run the company for 30 years and are now interested in retiring. Consequently, they are seeking a purchaser who will continue its operations, and a group of investors, Morgan Inc., is looking into the acquisition of RNA. To evaluate its financial stability and operating efficiency, RNA was requested to provide the latest financial statements and selected financial ratios. Summary information provided by RNA is as follows. RNA INC. INCOME STATEMENT FOR THE YEAR ENDED NOVEMBER 30, 2015 (IN THOUSANDS) $30,500 500 31,000 Sales (net) Interest.income Total revenue Costs and expenses Cost of goods sold Selling and administrative expenses Depreciation and amortization expense Interest expense 17,600 3,550 1,890 900 23,940 Total costs and expenses 7,060 2,800 Income before taxes Income taxes $ 4,260 Net income RNA INC. BALANCE SHEET As oF NOVEMBER 30 (IN THOUSANDS) 2015 - $ Cash Short-term investments (at cost) Accounts receivable (net) Inventory Total current assets Property, plant, & equipment (net) Total a sets Accounts payable lncome taxes payable Accrued expenses --- Total current liabilities Long-term debt Total liabilities -400 300 3,200 6,000 Total stockholders' equity Total liabilities and stockholders' equity $ 500 200 2,900 5,400 9,900 7,100 9,000 7,000 $17,000 $16,000 $ 3,700 900 1,700 , '6,300 2,000 $ 3,400 800 1,400 8,300 8,700 . 7,400 2,700 1.,000 4,900 8,600' $17,000 $16,000 2,700 . 1,000 5,000 Common stock ($1 par value) Paid-in capital in excess of par Retained earnings 2014 - 5,600 1,800 Selected Financial Ratios ----RNA INC. Current ratio Acid-test ratio Times interest earned Profit margin on sales Asset turnover Inventory turnover 2014 1.61 .64 8.55 13.2% 1.84 3.17 2013 1.62 .63 8.50 12.1% 1.83 3.21 Current Industry Average 1.63 .68 8.45 13.0% 1.84 3.18 -- ------- - Instructions Your response to this case should be in the form of a research paper. The research paper should be double-spaced throughout and typed in 12 point font that is easy to read such as Times New Roman. The paper must use APA style to cite the sources of information and to provide a reference list at the end of the paper. The title page should have your name as the author, my name as the instructor for whom it is for, the class number ACC 241 and the date. There are specific guidelines for citing sources and providing for a reference list at the end of the paper. Information on how to use APA style can be found at https://owl.english.purdue.edu/owl/section/2/10/ The paper must include the following: (a) (b) (c) (d) (e) Calculate a new set of ratios for the fiscal year 2015 for RNA based on the financial statements presented. Explain the analytical use of each of the six ratios presented, describing what the investors can learn about RNA's financial stability and operating efficiency. The meaning of the each ratio can be found in the textbook. You are encouraged to find other sources such as articles from professional journals. Be sure to cite the source of your information. Identify two limitations of ratio analysis. In parts b & part c it is necessary to properly cite the sources by using APA style. It is important to make a strategic decision as to the whether or not Morgan should purchase RNA. Your decision should state the reasons for your conclusion