Please solve the following question

STEP 7

Using the data from Income Statement and Balance Sheet prepared by you in step 7 compute the following ratios.

Requirement #12: Interpret the ratios computed in step 11. Your interpretation should include the definition of the ratio,its managerial use and how does it reflect the operating performance and financial health of the company.

Requirement #7: Prepare the financial statements for Bethany's Bicycle Corporation as of March 31 in the space below. ou will only be preparing the Income Statement, Statement of Retained Earning. and the Balance Sheet he Statement of Cash Flows is a required Financial Statement, but is not required for this project Bothany's Bicycle Corporation Income Statement Bothany's Bicycle Corporation Statement of Retained Earnings For the Month Ending March 31 Bethany's Bicycle Corporation Balance Sheet March 31 For the Month Ending March 31 $0 Assets: 2.025 Cash 2.025 Prepaid Insurance Revenves: Retained Earnings, March 1 Add: Net Income Subtotal Less: Dividends Retained Earnings, March 31 Bicycle Repair Revenue $18.060 2.200 5.350 Total Revenue 5,350 Repair Supplies $1,025 Repair Equipment 1,900 Store Rent Expense Telephone Expense Insurance Expense Repair Supplies Exp. Depreciation Exp. Less: Accum. Depr Total Assets $26,140 $26.140 Retained Earnings- $1,025 Liabilities and Stockholders' Equit Liabilities: Accounts Payable Income Taxes Payable Total Liabilities Electric Expense 65 5,115 Total Expenses 3,325 Net Income $2,025 Net Income Stockholders' Equity: Common Stock Retained Eamings Total Stockholders Equity 21.025 $26,140 Total Liabilities & Sockholders Equity $26,140 Using the data from Income Statement and Balance Sheet prepared by you in step 7 compute the following ratios. Current Ratio Formulo Computation Leverage Ratio Formula Computation Assets Turnover Ratio Formula Computation Net Profit Margin Ratios Formula Computation Requirement #12: Interpret the ratios computed in step 11. Your interpretation should include the definition of the ratio,its managerial use and how does it reflect the operating performance and financial health of the company Liquidity Ratios Solvency Ratios