Quantitative analysis in finance heavily relles on the data from ratio analysis. The process of working with multiple financial statements can be daunting but Excel can help you compute financial ratios-which you can then use to evaluate the financial health of the company. The most recent data from the annual balance sheets of Khoshjamal Corporation. are given in the balance sheet and the income statement given below: A B D E F 1 Balance Sheet Income Statement 2 3 Assets Liabilities & Equity Net Sales 2,500 1,723 4 Current assets: Current liabilities: Operating costs except depreciation and amortization 5 Cash $922 Accounts payable $0 Depreciation and amortization 100 1,823 6 Accounts receivable 338 Accruals Total Operating Costs 7 Inventories 990 2,250 0 Notes payable 1,687 Total current liabilities. 1,687 677 Operating Income (or EBIT) Less: Interest 8 Total current assets 54 9 Earnings before taxes (EBT) 623 Long-term bonds Less: Taxes (40%) 249 2,063 3,750 11 Net fixed assets: Total debt Net Income 374 12 13 2,750 Common equity Net plant and equipment 14 Common stock 813 15 Retained earnings 437 16 Total common equity 1,250 17 Total assets 5,000 5,000 Total liabilities and equity Using the data you have and the formula you will be using in ratio analysis, solve for the ratios using Excel commands: A B Ratio Formula Excel Solution 2 3 Current ratio Current Assets / Current Liabilities 4 Inventory turnover ratio Sales Inventories 5 Fixed assets turnover ratio Sales / Net Fixed Assets Sales/Total Assets 6 Total assets turnover ratio 7 Debt ratio Total Debt / Total Assets 8 Times interest ratio EBIT / Interest Expense 9 1 10