On January 1,2022, 300 additional shares of common stock were sold (share numbers in thousands). The Windy West Company The Windy West Company Comparative Statements of Retained Earnings For the Year Ended December 31 (thousands of \$) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ ACC 1175 - Case Study } \\ \hline & & & & & & \\ \hline \multicolumn{7}{|c|}{ Required: } \\ \hline \multicolumn{7}{|c|}{ 1. Complete the required calculations. Round all answers two decimal places. (51 Marks) } \\ \hline \multicolumn{7}{|c|}{\begin{tabular}{l} 2. What conclusion can be drawn from each of the financial ratio areas you calculated above? Compare 2022 to 2021 and 2020 \\ to identify trends. Also compare to the industry averages found attached to this problem. (20 Marks) \end{tabular}} \\ \hline \multirow{2}{*}{\multicolumn{7}{|c|}{\begin{tabular}{l} 3. Was The Windy West Company wise to expand operations? Yes or no and a brief explanation. (9 Marks) \\ 4. Submit this sheet with your calculations AND THE SUMMARY sheet, along with your written answers to Questions \# 2 and \# \\ 3 to your instructor \end{tabular}}} \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & \begin{tabular}{l} INDUSTRY \\ AVERAGE \end{tabular} & Formula & 2022 & 2021 & 2020 \\ \hline 1 & Current ratio & 1.6:1 & & & & \\ \hline 2 & Acid-test ratio & 1.1:1 & & & & \\ \hline 3 & \begin{tabular}{l} Accounts receivable \\ turnover \end{tabular} & 16 times & & & & \\ \hline 4 & \begin{tabular}{l} Days' sales \\ uncollected \end{tabular} & 21 days & & & & \\ \hline 5 & \begin{tabular}{l} Merchandise \\ turnover \end{tabular} & 5 times & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & \begin{tabular}{l} INDUSTRY \\ AVERAGE \end{tabular} & Formula & 2022 & 2021 & 2020 \\ \hline 6 & \begin{tabular}{l} Days' sales in \\ inventory \end{tabular} & 60 days & & & & \\ \hline 7 & Total asset turnover & 2.3 times & & & & \\ \hline 8 & Debt ratio & 35% & & & & \\ \hline 9 & Equity ratio & 65% & & & & \\ \hline 0 & \begin{tabular}{l} Times interest \\ earned \end{tabular} & 50 times & & & & \\ \hline 11 & Profit margin & 20% & & & & \\ \hline 12 & Gross profit ratio & 18% & & & & \\ \hline 3 & \begin{tabular}{l} Return on total \\ assets \end{tabular} & 20% & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|c|c|c|c|c|} \hline & \begin{tabular}{c} INDUSTRY \\ AVERAGE \end{tabular} & Formula & 2022 & 2021 & 2020 \\ \hline 14 & \begin{tabular}{l} Return on common \\ S/E equity \end{tabular} & 32.70% & & & & \\ \hline 15 & \begin{tabular}{l} Basic earnings per \\ share \end{tabular} & $1.79 & & & & \\ \hline 16 & Price-earnings ratio & 18.2 & & & & \\ \hline 17 & Dividend yield & 13.50% & & & & \\ \hline \end{tabular}