The purpose of the second part of the comprehensive project is to compute financial statement ratios. Based on the company you selected in Part I, complete the following:

A. Compute the following ratios for two years. You may use Excel to compute your ratios.

1. Debt ratio

2. Gross profit margin

3. Free cash flow

4. Times interest earned

5. Accounts receivable turnover

6. Inventory turnover

B. Prepare a DuPont Analysis of ROE for two years, including computations of

1. Return on Sales

2. Asset Turnover

3. Return on Assets

4. Financial Leverage

5. Return on Equity

C. Evaluate the ratio trends. Your evaluation should be consistent with your calculations for the two (2) years.