The Business This practice set is designed in two parts. The first part provides a review of the financial statements of Ellie's Earphones, Inc. selling earphone inventory. Ellie's Earphones, Inc., whose primary operation is the sale of earphones to on-line customers and retailers in the market. Each student will prepare a financial analysis and Statement of Cash Flow for the company. In the second part, Ellie's Earphones, Inc., decides to start producing the earphones and selling them directly on the Internet and to customers. All cases of academic dishonesty will be reported to the Office of Student Life. Part One Instructions The financial information for the past two years (2021 and 2022) is provided. Ellie's Earphones collection policy is 30 days and the benchmark for the inventory is 35 days. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Working Capital 2021, 2022 b. Current Ratio - 2021, 2022 Quick Ratio-2021, 2022 Accounts Receivable Turnover - 2022 Number of Days Sales in Receivables - 2022 Inventory Turnover - 2022 Number of Days Sales in Inventory - 2022 C. d. e. f. g. h. i. Return on Total Assets 2022 j. Return on Stockholders' Equity - 2022 k. Earnings Per Share -2021, 2022 Ratio of Liabilities to Stockholders' Equity - 2022