please help me to understand this scenario:

"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 "

Income Statements

Fashion Forward Dream Designs

12/31/2018 12/31/2018

Revenue

Credit Sales 2,000,000 4,320,000

Non-Credit Sales 500,000 1,080,000

Total Revenue 2,500,000 5,400,000

Cost of Sales 1,400,000 3,250,000

Gross Profit 1,100,000 2,150,000

Operating Expenses

Research and Development 50,000 200,000

Selling, General, and Admin. 750,000 1,600,000

Total Operating Expenses 800,000 1,800,000

Earnings Before Interest and Taxes 300,000 350,000

Interest Expense (18,000) (50,000)

Income Before Tax 282,000 300,000

Income Tax Expense (145,500) (87,500)

Net Income 136,500 212,500

Balance Sheets

fashion Forward Fashion Forward Dream Designs Dream Designs

12/31/2018 12/31/2017 12/31/2018 12/31/2017

Current Assets

Cash and Cash Equivalents 950,000 980,000 1,710,000 1,705,000

Accounts Receivable 200,000 150,000 250,000 275,000

Inventory 112,000 105,000 200,000 215,000

Other Current Assets 35,000 50,000 120,500 100,000

Total Current Assets 1,297,000 1,285,000 2,280,500 2,295,000

Property, Plant and Equipment 635,000 700,000 850,000 900,000

Goodwill 750,000 750,000 1,150,000 1,150,000

Other Long-Term Assets 65,000 70,000 100,750 105,000

Total Assets 2,747,000 2,805,000 4,381,250 4,450,000

Current Liabilities

Accounts Payable 545,000 535,000 845,750 875,000

Short-Term Debt 25,000 - 50,000 60,000

Other Current Liabilities 600,000 510,000 730,000 740,000 Total Current Liabilities 1,170,000 1,045,000 1,625,750 1,675,000 Long-Term Debt 75,000 - 120,500 130,000

Other Long-Term Liabilities 100,000 75,000 155,000 165,000

Total Liabilities 1,345,000 1,120,000 1,901,250 1,970,000

Stockholders Equity

Common Stock 500,000 775,000 749,500 942,750 Preferred Stock 150,000 294,500 390,000 409,250 Retained Earnings 752,000 615,500 1,340,500 1,128,000

Total Stockholders Equity 1,402,000 1,685,000 2,480,000 2,480,000

Total Liabilities and 2,747,000 2,805,000 4,381,250 4,450,000

Stockholders Equity

teach me how to compute the following ratios for each company:

• a)Profit Margin Ratio
• b)Return on Assets
• c)Current Ratio
• d)Quick Ratio
• e)AR Turnover Ratio
• f)Average Collection Period
• g)Inventory Turnover Ratio
• h)Average Sales Period
• i)Debt to Equity Ratio

j) help me to explain how the computations were performed

k)kindly help me to evaluate the results for each company and explain what each ratio means

L) how do i compare and contrast the companies.

m)please Based on the analysis help me to: 1) recommend which company the organization should pursue

2) how can i support my conclusions so that it includes other factors that can be considered