Ratios to calculate for $2019$ and $2020$ spreadsheet:

$*$Current ratio

$*$Debt to Equity Ratio

$*$Interest Coverage Ratio $($Assume interest expense equals interest paid.$)$

$*$Return on Assets

$*$Working Capital

$*$Financial Statements for Rainbow Company

Rainbow Company Balance Sheet

December $31$Return on Equity

Prepare horizontal analysis :

$*$Computing the difference in each line item $(2019$ to $2020).$

$*$Determining the percentage of change from $2019$ to $2020$ for each

$-$Based on the ratios calculated above, what assumptions can you make about Rainbow Company?

$-$Based on the horizontal analysis, what judgments can you make about the company's performance?