Interpretation of Financial Ratios You are the financial analyst at Sew Mart, an arts and crafts retail store. Your boss has asked you to review the company's financial results for the past three years and to provide an analysis of your findings: Sew Mart Ratios 20.9 20x8 20x7 162 22.1 25.1 1.90 Sales trend Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover 132 0.78 0.40 41.29 3.58 33.20 625 Incorporate the following questions into your discussion of the company's financial performance. 1. Has your company performed worse, better, or about the same? 2. Should you be concerned about any ratio noted in your analysis? 3. What recommendations would you share with your boss on the financial health of the company? Prepare a brief memo summarizing how your company is performing and recommendations. Use the questions as a guide. To: Boss From: Student RE: Financial Ratio Analysis to $898