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Please describe the circumstances of the following case study and recommend which company to purchase. Explain your approach to the problem, perform relevant calculations and

Please describe the circumstances of the following case study and recommend which company to purchase. Explain your approach to the problem, perform relevant calculations and analyses, and justify your recommendation. Ensure your work and conclusions are thoroughly supported.

Case Study:

You work in the mergers and acquisitions department of a large conglomerate who is looking to invest in a retail business. Two companies, Fashion Forward and Dream Designs, are the final two options being considered. You have the most recent availableincome statements and two years of balance sheetsfor each company.

Compute the following ratios for each company:

  • 1-Profit Margin Ratio
  • 2-Return on Assets
  • 3-Current Ratio
  • 4-Quick Ratio
  • 5-AR Turnover Ratio
  • 6-Average Collection Period
  • 7-Inventory Turnover Ratio
  • 8-Average Sales Period
  • 9-Debt to Equity Ratio
  • 10-For this assignment:Compute all required amounts and explain how the computations were performed
  • 11-Evaluate the results for each company and explain what each ratio means
  • 12-Compare and contrast the companies.
  • 13-Based on your analysis:
  • 14-recommend which company the organization should pursue
  • 15-Thoroughly support your conclusion, including what other factors should be considered
  • 16-Be specific.

please answer each question by its number to help understand and cite all the resources and avoid plagiaraism

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