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:
• recommend which company the organization should pursue
• Thoroughly support your conclusion, including what other factors should be considered
• Be specific.

please answer each question separately showing all the equations and cite your answer , avoid plagiaraism

Q 5110WA7rFinancials [Protected View] , Excel heba sharaf File Home insert Draw Page Layout Formulas Data Review View Help 9 Tell me what you want to (la 0 PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View. Enable Editing X A1 ' E -- r BUS 5110 Written Assignment7 Financials v A A l B | c | D I E I F I G H I | J ; L BUS 5110 Writtei-lr Assignment 7 Financials L Income Statements Balance! Sf Fashion Forward Dream Designs Fashion Forward Fashion Forward 4_ 12/31/2018 12/31/2013 12/31/2018 12/31/2017 Sf Revenue Current Assets i Credit Sales 2,000,000 4,320,000 Cash and Cash Equivalents 950,000 980,000 L Non-Credit Sales 500,000 1,080,000 Accounts Receivable 200,000 150,000 8* Total Revenue 2,500,000 5,400,000 Inventory 112,000 105,000 9* Other Current Assets 35,000 50,000 10 Cost of Sales 1,400,000 3,250,000 Total Current Assets 1,297,000 1,285,000 1; Gross Profit 1,100,000 2,150,000 Property, Plant and Equipment 635,000 700,000 3 Goodwill 750,000 750,000 E Operating Expenses Other Long-Term Assets 65,000 70,000 11 Research and Deveiopment 50,000 200,000 Total Assets 2,747,000 2,305,000 13 Selling, General, and Administrative 750,000 1,600,000 13 Total Operating Expenses 800,000 1,800,000 Current Liabilities 1: Accounts Payabie 545,000 535,000 18 Earnings Before Interest and Taxes 300,000 350,000 ShortTerm Debt 25,000 - 11 Other Current Liabilities 600,000 510,000 20 Interest Expense (18,000) (50,000) Total Current Liabilities 1,170,000 1,045,000 2; Income Before Tax 282,000 300,000 Long-Term Debt 75,000 - 2i Income Tax Expense (145,500) (87,500) Other Long-Term Liabilities 100,000 75,000 2; Net Income 136,500 212,500 Total Liabilities 1,345,000 1,120,000 2: 25 Stockholders Em ' Is : 5 4 | > _ _ E P 7 I + 100% 1, - 12:38AM E: ,0 Type here to search 0 El 0 H a E A 6 El r' 3/16/2021 Cl 5110WA7-Financials (1) [Protected View] - Excel heba sharaf X File Home Insert Draw Page Layout Formulas Data Review View Help Tell me what you want to do Share i PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X A1 X V fx BUS 5110 Written Assignment 7 Financials C D E F G H K L M NA 00 2,500,000 5,400,000 Inventory 112,000 105,000 200,000 215,000 9 Other Current Assets 35,000 50,000 120,500 100,000 10 1,400,000 3,250,000 Total Current Assets 1,297,000 1,285,000 2,280,500 2,295,000 11 1,100,000 2,150,000 Property, Plant and Equipment 635,000 700,000 850,000 900,000 12 Goodwill 750,000 750,000 1,150,000 1,150,000 13 Other Long-Term Assets 65,000 70,000 100,750 105,000 14 50,000 200,000 Total Assets 2,747,000 2,805,000 4,381,250 4,450,000 15 750,000 1,600,000 16 800,000 1,800,000 Current Liabilities 17 Accounts Payable 545,000 535,000 845,750 875,000 18 300,000 350,000 Short-Term Debt 25,000 50,000 60,000 19 Other Current Liabilities 600,000 510,000 730,000 740,000 20 (18,000) (50,000) Total Current Liabilities 1,170,000 1,045,000 1,625,750 1,675,000 21 282,000 300,000 Long-Term Debt 75,000 120,500 130,000 22 (145,500) (87,500) Other Long-Term Liabilities 100,000 75,000 155,000 165,000 23 136,500 212,500 Total Liabilities 1,345,000 1,120,000 1,901,250 1,970,000 24 25 Stockholders Equity 26 Common Stock 500,000 775,000 749,500 942,750 27 Preferred Stock 150,000 294,500 390,000 409,250 28 Retained Earnings 752,000 615,500 1,340,500 1,128,000 29 Total Stockholders Equity 1,402,000 1,685,000 2,480,000 2,480,000 30 31 Total Liabilities and Stockholders Equity 2,747,000 2,805,000 4,381,250 4,450,000 32 IS + + 100% 7:29 AM Type here to search O W 3/16/2021