Part 2 In this part of your assignment, you will compose an analytical study reporting your results from Part 1. The CEO of your company is forming a task force to review the financials and present a review for acquisition of ABC Company. Based on ABCs 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 departments 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 your team has 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 the teams final recommendation as to whether or not the CEO should invest in ABC Company. Your paper should follow this format: Title page with each team members name that participated on the team project Introduction: the purpose of the analysis Analysis with subheadings of Part 1, Part 2, and Part 3 Recommendation (overall conclusion) Reference page

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\begin{tabular}{|c|c|c|c|c|c|} \hline 1. & Ratio Calculations & & & & \\ \hline 2 & & 2015 & 2014 & 2013 & Formula Used (Write out formulas) \\ \hline 3 & Liquidity Ratios & & & & \\ \hline 4 & Current Ratio & 0.9695 & 0.8823 & 0.8462 & current assest/ current liability \\ \hline 5 & Quick Ratio & 0.2779 & 0.2354 & 0.2206 & (current assets- inventory)/ current liabilites \\ \hline 6 & & & & & \\ \hline 7 & Activity Ratios & & & & \\ \hline 8 & Inventory Turnover & 2.0283 & 2.0151 & 7.9656 & COGS/ inventory \\ \hline 9 & Accounts Recievables Turnover & 18.0472 & 18.0387 & 72.8291 & annual credit sales/ accounts receivable \\ \hline 10 & Total Asset Turnover & 0.5945 & 0.5852 & 2.3502 & sales/total assets \\ \hline 11. & Average Collection Period & 5.0562 & 5.0586 & 5.0117 & accounts receivable/(annual credit sales/365 days)= accounts receivable/ daily credit sales \\ \hline 12 & & & & & \\ \hline 13. & Financing Ratios & & & & \\ \hline 14 & Debt Ratio & 0.6004 & 0.6203 & 0.6729 & total liabilities/ total assets \\ \hline 15 & Debt-to-Equity Ratio & 1.5027 & 1.6336 & 2.0574 & total debet/total shareholder equity \\ \hline 16 & Times Interest Earned Ratio & 10.9850 & 11.4574 & 15.6145 & EBIT/ interest expense \\ \hline 17 & & & & & \\ \hline 18 & Market Ratios & & & & \\ \hline 19 & Earnings per Share (EPS) & 1.16450 & 1.15493 & 1.58357 & (net income-dividend payments)/ average outstanding share \\ \hline 20 & Price Earnings ( PE) & 8.62069 & 7.82609 & 5.37975 & market price per share/ earnings per share \\ \hline 21 & & & & & \\ \hline 22 & Profitability Ratios & & & & \\ \hline 23 & Return on Equity (ROE) & 20.03% & 20.80% & 33.52% & net income/common equity \\ \hline 24 & Return on Assets (ROA) & 13.27% & 13.07% & 16.99% & EBIT / total assets \\ \hline 25 & Net Profit Margin & 3.36% & 3.39% & 4.67% & net income/ sales \\ \hline 26 & Operating Profit Margin & 5.59% & 5.64% & 7.25% & EBIT/ sales \\ \hline \end{tabular}