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Questions 1 ( 6 0 points ) : From the information stated below, give your answers for the year ending Jan. 2 9 , 2
Questions points: From the information stated below, give your answers for the year ending Jan. Analyse the profitability of the company. o To do that calculate: The gross margin percentage The return on total assets The return on equity Assess the liquidity and asset management of the companyo To do that calculate: Working capital. The current ratio. The acidtest ratio. The average collection period. The average sale period. The operating cycle Assess the company solvency:o In order to do that, calculate: The debttoequity ratio. The times interest earned ratio. Summarize which are the strengths and weaknesses. Which recommendations would you give to the company management to improve its competitive position? Support your answer on your calculations. Prepare a common size income statement and answer to the following questions: How is the development of the sales of the company in the period? What is the development of the margin? What is the development of the fixed costs? Make your comments and explain numerically the development of the following items:a Total Assetsb Total Liabilitiesc Stockholders Equityd Change in cash e What is the working capital of the company, is it adequate for the business of the company?f Comment on the leverage of the company and give an explanation based on calculations.k Comment on the cash flow development of the period.l Explain the difference between Net Income and Operating Cash Flow.
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