Hormel story:

http://e.startribune.com/Olive/ODN/StarTribune/shared/ShowArticle.aspx?doc=MST%2F2021%2F02%2F12&entity=Ar02300&sk=D5EFBA26&mode=text

Hormel annual report:

https://www.sec.gov/cgi-bin/viewer?action=view&cik=48465&accession_number=0000048465-20-000043&xbrl_type=v

view and download Hormels most recent annual report here. For purposes of these questions, lets assume the following about the structure of the deal:

• Hormel paid about 1/3 of the $3.35 billion purchase price in cash, 1/3 in short-term debt, and 1/3 in long-term debt;
• 70% of the assets acquired are non-current, 30% are current assets.

1. Think about how this deal will affect Hormels financial statements and identify 5 of the ratios think will be affected.(PM, ROA,DSO,Debt,TIE,EC)ratio
2. For each of the ratios, indicate whether the ratio will be better (stronger) immediately after completion of the deal, worse (weaker), or whether the effect cannot be determined from the information we have. If the effect cannot be determined, describe what additional information we would need to answer the question.

C.Finally, how will the deal affect the same 5 ratios one year from now