The purpose of this assignment is to evaluate data from a company's financial statements to make relevant business decisions. Use the information provided in Case 5.6 in Appendix 5A of the textbook, Understanding Financial Statements, to write a 250-500-word memo to your manager, the chief operating officer of Luna Lighting. Summarize the information from the 3 years' financial statements, the ratio calculations, and industry comparisons provided in the case to present possible solutions to the company's profitability problems. Be sure to conclude with projecting the future success of the company based on your findings. No specific memo template will be provided, but a professional memo format is still expected. You may utilize resources from the Microsoft Word Suite and the Internet to assist in developing a professional memo. APA style is not required, but solid academic writing is expected. This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. 5.6. Luna Lighting, a retail firm, has experienced modest sales growth over the past three years but has had difficulty translating the expansion of sales into improved profitability Using three years' financial statements, you have developed the following ratio calcula- tions and industry comparisons. Based on this information, suggest possible reasons for Luna's profitability problems. Industry Averages 2016 2016 2015 2014 2.3X 2.3x 45 days 46 days 8.3x 2.1x 50 days 8.3X 3.5X 1.5X 54% Current Average collection period Inventory turnover Fixed asset turnover Total asset turnover Debt ratio Times interest earned Fixed charge coverage Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity 2.7X 1.1x 50% 8.1x 4.0X 43% 6.3% 3.5% 3.7% 7.4% 7.2x 2.2x 47 days 8.1X 3.3X 1.3X 50% 8.1X 5.5X 43% 8.0% 4.3% 5.7% 11.4% 8.2x 3.0x 1.2X 50% 8.2X 4.5X 43% 7.2% 4.0% 5.0% 9.9% 5.1X 40% 7.5% 4.2% 6.4% 11.8%