Please refer to the income statement and balance sheet for the Exceptional Service Grading Company available here. Using the learning resources provided in the Reading Assignment, perform a financial ratio analysis of the company using the following ratios:

Gross profit margin

Current ratio

Debt ratio

Locate two other ratios to calculate. Define them and explain their purpose and how they add value to your analysis. Select significant lines from the financial statements and provide an observation of their trends. For example, if the account is increasing or decreasing in value, what would that indicate? Draw some conclusions based on your observations. For example: Is there any viability for a new project? Why do you think the assets of the company went up from 2017 to 2018? What implications does this have? What follow-up questions do you have to ask the companys management?

Balas S ims 2018 CURRENT ASSETS 456.500 222.400 due divideda padin 2018 Receivables hyenbory Other 100,200 934,300 1.169.500 Total cument 4,576,900 Carruar 2017: Current rate 2018: LONG TERM ASSETS Note Receivable Equipment ind of depresion 380.600 280.700 Sonditional de 1.017.800 din 2018 Totall on om 1,355,600 1.298,500 TOTAL ASSETS 7.007.800 5.875.400 LIABILITIES AND STOCKHOLDERS EQUITY Deberaba 2017: Deberaba 2018: 2.783.100 2.805.700 CURRENT LIABILITIES Accounts payable Note payable (cumen dhaal aeties ) 214,600 Total cumontities 3,325.950 3.292.850 LONG TERM LIABILITIES Note puble long term Long terme lies 454,800 454.800 Toulon mobilies 225.050 TOTAL LIABILITIES 4.170,300 4,067.900 450.000 STOCKHOLDERS' EQUITY Common stock Raamal tamings) Total stockhollanequity 1.357.500 2.837.500 TOTAL LIABILITIES AND STOCKHOLDERS ECOLIITY 7.00 7.800 lace Names 2015 Answers/Comments Service Contract Revenues 9.200.000 6595.400 Increase in contracts Service Contract Costs (6.503.100) (4.957.800) Grow Profit 2.696.900 1,637.600 Gross profit margin 2017: Gross profit margin 2018: (756.000) General and Administrative Expenses (896.000) Operating Income 1.800.900 881.600 Increase in profitsee above comment Gain on sale of equipment 59.900 7.700 Interest expense (69,500) (70,800) Other expuse (63.100) Income before taxes 1,781,700 755 400 (451,700) (300.900) Net Income 1.330.000 454,300 Increase in net income from 2017 2018 Retained Earnings, Beginning Bilance 1,057 500 2.387.500 1.057.000 1.507 500 (150,000) No dividend paid in 2018 Les Dividends paid Retained Earnings, Ending Balance 2157500 1357 500