Part 2. In this part of your assessment, you will compose an analytical study reporting your results from Part 1. (Below calculation). The CEO of your company is forming a task force to review the financials and present a review for the acquisition of ABC Company. Based on ABC's previous 3 years of financials, determine if this would be a good acquisition. You must form the task force to complete the task.

The CEO would like most of the departments to participate in the process. Using each department's area of expertise, what information would each of the following departments contribute to the final decision? Provide a minimum one-paragraph response for each department.

• Finance Department
• Sales Department
• Marketing Department
• Human Resources
• Legal Department

Part 3

After you have provided their input on the effect the acquisition will have on their department, perform an overall analysis to explain your recommendation to the CEO. Your analysis should include the following:

• Explain how the company is trending based on the year-over-year ratios.
• Compare the company to the industry average in Appendix A in the Excel workbook in areas of profitability, management effectiveness, and efficiency.
• Based on the above, summarize the pros and cons of ABC Company using both the year-over-year ratio analysis from Part 1 and the industry average comparisons from Part 3.
• Provide your final recommendation as to whether or not the CEO should invest in ABC Company.

Your paper should follow this format:

• Introduction: the purpose of the analysis
• Analysis with subheadings of Part 1, Part 2, and Part 3
• Recommendation (overall conclusion)
• Reference page

Ratio Calculations: Part 1

Year	Current Ratio	Quick Ratio	Inventory Turnover	A/R Turnover	Total Asset Turnover	Average Collection Period	Debt Ratio	Debt to Equity Ratio
2015	0.97	0.28	8.62	18.05	0.59	5.06	0.25	0.62
2014	0.88	0.24	7.97	18.04	0.59	5.06	0.28	0.73
2013	0.85	0.22	2.03	72.83	2.35	5.01	0.29	0.90

Ratio	ABC Company Average	Industry Average
Profitability
Net Profit Margin	3.81%	6.01%
Operating Profit Margin	6.16%	12.04%
Earnings per Share	1.58	1.49
Management Effectiveness
Return on Equity	24.78%	12.40%
Return on Assets	8.95%	5.61%
Efficiency Ratio
Total Assets Turnover	1.18	0.55
Accounts Receivable Turnover	36.31	8.21
Inventory Turnover	4.00	44.98