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:

Profit Margin Ratio

Return on Assets

Current Ratio

Quick Ratio

AR Turnover Ratio

Average Collection Period

Inventory Turnover Ratio

Average Sales Period

Debt to Equity Ratio

For this assignment:

Compute all required amounts and explain how the computations were performed

Evaluate the results for each company and explain what each ratio means

Compare and contrast the companies.

Based on your analysis:

orecommend which company the organization should pursue

oThoroughly support your conclusion, including what other factors should be considered

oBe specific.