Submit a paper that is 4 pages in length, exclusive of the reference page.

Please describe the circumstances of the following case study and recommend which company to purchase. Explain your approach to the problem, perform relevant calculations and analyses, and justify your recommendation. Ensure your work and conclusions are thoroughly supported.

Case Study:

You work in the mergers and acquisitions department of a large conglomerate who is looking to invest in a retail business. Two companies, Fashion Forward and Dream Designs, are the final two options being considered. You have the most recent available income statements and two years of balance sheets for each company.

Compute the following ratios for each company:

• Profit Margin Ratio
• Return on Assets
• Current Ratio
• Quick Ratio
• AR Turnover Ratio
• Average Collection Period
• Inventory Turnover Ratio
• Average Sales Period
• Debt to Equity Ratio

For this assignment:

• Compute all required amounts and explain how the computations were performed
• Evaluate the results for each company and explain what each ratio means
• Compare and contrast the companies.
• Based on your analysis:
  • recommend which company the organization should pursue
  • Thoroughly support your conclusion, including what other factors should be considered
  • Be specific.

Superior papers will:

• Perform all calculations correctly.
• Articulate how the calculations were performed.
• Evaluate the ratios computed and explain the meaning of the ratios.
• Compare the companies.

Please do not plagiarize

Please don't send me the answers already here

BUS 5110 Written Assignment 7 Financials Income Statements Fashion Forward Dream Designs 31/12/2018 31/12/2018 Balance Sheets Fashion Forward Fashion Forward Dream Designs 31/12/2018 31/12/2017 31/12/2018 Dream Designs 31/12/2017 Revenue Credit Sales Non-Credit Sales Total Revenue 2 000 000 500 000 2 500 000 4320 000 1 080 000 5 400 000 Current Assets Cash and Cash Equivalents Accounts Receivable Inventory Other Current Assets Total Current Assets Property, Plant and Equipment Goodwill Other Long-Term Assets Total Assets Cost of Sales Gross Profit 1 400 000 1 100 000 3 250 000 2 150 000 950 000 200 000 112 000 35 000 1 297 000 635 000 750 000 65 000 2 747 000 980 000 150 000 105 000 50 000 1 285 000 700 000 750 000 70 000 2 805 000 1 710 000 250 000 200 000 120 500 2 280 500 850 000 1 150 000 100 750 4 381 250 1 705 000 275 000 215 000 100 000 2 295 000 900 000 1 150 000 105 000 4450 000 Operating Expenses Research and Development Selling, General, and Administrative Total Operating Expenses 50 000 750 000 800 000 200 000 1 600 000 1 800 000 535 000 Earnings Before Interest and Taxes 300 000 350 000 Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities 510 000 1 045 000 Interest Expense Income Before Tax Income Tax Expense Net Income (18 000) 282 000 (145 500) 136 500 545 000 25 000 600 000 1 170 000 75 000 100 000 1 345 000 (50 000) 300 000 (87 500) 212 500 845 750 50 000 730 000 1 625 750 120 500 155 000 1 901 250 875 000 60 000 740 000 1 675 000 130 000 165 000 1970 000 75 000 1 120 000 Stockholders Equity Common Stock Preferred Stock Retained Earnings Total Stockholders Equity 500 000 150 000 752 000 1 402 000 775 000 294 500 615 500 1 685 000 749 500 390 000 1 340 500 2 480 000 942 750 409 250 1 128 000 2 480 000 Total Liabilities and Stockholders Equity 2 747 000 2 805 000 4381 250 4 450 000