The financial information for the past two years (2021 and 2022) is provided. "Spartan Cases, Inc.'s" collection policy is 30 days for their receivables and the benchmark for the inventory is 30 days. Using a spreadsheet application, 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 a Comparative Statement of Income. 4. Using the textbook, calculate the ratios set out below: a. Working Capital 2021, 2022 b. Current Ratio - 2021, 2022 c. Quick Ratio - 2021, 2022 d. Accounts Receivable Turnover - 2022 e. Number of Days Sales in Receivables-2022 f. Inventory Turnover - 2022 8. Number of Days Sales in Inventory-2022 h. Return on Total Assets - 2022 Ratio of Liabilities to Stockholders' Equity - 2021 & 2022 Return on Stockholders' Equity - 2022 i. j. k. Earnings Per Share - 2021, 2022 The financial statements provided in this practice set can be downloaded from Blackboard. Read the instructions provided before downloading. Download the Excel files on Blackboard (Income Statement, Statement of Stockholders' Equity and Balance Sheet) and add a column and calculate the ratios for the vertical and horizontal analysis. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements prepared in step two and three and along with the ratios that have been calculated above and prepare an analysis of the company's financial position. Identify two strengths and two weaknesses in the company. Make two recommendations to improve the company's financial position. Be specific in each of the recommendations and use all of the above ratios to support your analysis. The length should be no more than one paragraph. Print out your memo and use it to answer the questions in Blackboard. Part of the assignment requires you to go to the Writing Center for help. You will receive a receipt from the writing center when you attend that you will turn in with the assignment. Only the writing portion of the assignment will be turned in with the receipt. All other calculations and answers will be done in Blackboard. Make sure you do not have any spelling, grammatical or punctuation errors. Current Assets; Cash Accounts Receivable, Net Merchandise Inventory Prepaid Rent Assets Total Assets Totol Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Equipment Total Property, Plant, ond Equipment Spartan Cases Inc. Comparative Balance Sheet December 31, 2021 and 2022 $ 5 $ $ S 5 $ S $ 2022 883,700 220,000 40,000 50,000 1,193,700 346,000 (58,000) 288,000 1,481,700 $ $ S S S S S 2021 5 S 266,200 150,000 30,000 70,000 516,200 270,000 (20,000) 250,000 766,200 m Comparative Balance Sheet Current Assets: Cash Accounts Receivable, Net Merchandise Inventory Prepaid Rent Tiff Total Assets Assets Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment [[|]]]]]]]]]]]]99272 Spartan Cases Inc. Comparative Balance Sheet December 31, 2021 and 2022 $ $ $ $ $ $ $ $ $ 2022 883,700 220,000 40,000 50,000 1,193,700 346,000 (58,000) 288,000 1,481,700 $ $ $ ACCOUNTING SOCIETY $ $ $ 2021 $ $ $ 266,200 150,000 30,000 70,000 516,200 270,000 (20,000) 250,000 766,200 51 Page M Comparative Income Statement Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations Loss on Sale of Equipment Interest Expense Increase (Decrease) in Operating Income Income before Taxes Federal Income Taxes Net Income Spartan Cases Inc. Comparative Statement of Income For the Years Ended December 31, 2021 and 2022 2022 $1,500,000 $ 450,000 $ 1,050,000 $ 150,000 $ 45,000 $ 50,000 $ 245,000 $ 805,000 $ 4,000 $ 16,000 $ (20,000) $ 785,000 $ 235,500 $ 549,500 2021 $ 1,100,000 $ 440,000 $ 660,000 $ $ ACCOUNTING 120,000 25,000 $ 40,000 $ 185,000 $ 475,000 $ $ $ $ $ 16,000 (16,000) 459,000 132,800 326,200 71 Page Comparative Statement of Retained Earnings Retained Earnings, Beginning of Year Net Income Less: Dividends Spartan Cases Inc. Comparative Statement of Retained Earnings For the Years Ended December 31, 2021 and 2022 2022 $426,200 2. Stock was issued for cash. 3. Dividends were paid in cash. $ 5 326,200 $100,000 Retained Earnings, End of Year $ 425,200 $ 795,700 1. Equipment with a cost of $24,000 on which depreciation has been recorded was sold for cash. Equipment was purchased using cash and a long-term note payable. 549,500 180,000 $ 2021 $ 200,000 ACCOUNTING OCIETY