The ratio problem is solved I just need the following:

1. For each individual ratio for each company, Your comments for each ratio should include more than just a definition or increase or decrease ofthe ratio. You should focus on interpreting each ratio number for the company andsupport your comments.
2. Use the ratio results by category to form and support conclusion by Liquidity, Solvency and Profitability. Thenuse to complete the Overall Conclusion as to the financial results of the company (ratios described in the chapters covered and summarized in Chapter 14 of your textbook). Conclude by stating whether the company is the better employment /investment opportunity and why.

Explanation: 1 working capital current assets -current liabilities 3690000-900000 2790000 2 current ratio current assets /current liabilities 3690000/900000 4.1 3 quick ratio (current assets-inventory -prepaid $90000-1190000-250000)/900000 2.5 expenses)/current liabilities 4 accounts receivable net credit /average accounts receivable 10000000/((510000+740000)/2) 16 turnover 5 inventory turnover 365/accounts receivable turnover 365/16 22.8 6 inventory turnover cost of goods sols/ average inventory 5350000/((950000+1190000)/2) 5 7 number of days sales 365/inventory turnover 365/5 73 n inventory 8 ratio of fixed assets fixed assets/long term liabilities 3740000/1700000 2.2 to long term liabilities 9 ration of liabilities to liabilities/stock holders equity 2600000/7180000 0.36 stock holders equity 10 times interest earned earning before interest and tax/interest |1300000/170000 7.6 expense 11 asset turnover sales/average total assets 10000000/[(9780000+8755000)1/2 1.4 12 return on total assets (net income +other expense )+average 900000+170000/[(9780000+8755000)/2] 11.5% total assets) 13 return on stock net income/average stockholders 900000/[7180000+6375000)/2] 13.3% holders equity equity 14 return on common (net income -preference dividend [900000-45000]/[(7180000-500000)+ 13.6% stock holders equity )average common stockholders equity) (6375000-500000)1/2 15 earnings per share on (net income -preference dividend [900000-45000]/[500000/5]+ 8.55 common stock )/average number of common stock [(500000/5)/ 16 price earning ratio market price of common stock /EPS 119.70/8.55 14 17 dividend per share of dividend on common stock/average 50000/[500000/5]+[(500000/5)/2] 0.50 common stock number of common stock 18 dividend yield dividends per share of common stock 0.50/119.70 0.4% /market price of common stock averange accounts receivable (net)= accounts receivable (net ) as at 31st Dec 2019+accounts receivable (net) as at 31st dec 2015)/2 =(740000+510000)/2=625000 avarange inventory=inventory as at 31st Dec 2016+inventory as at 31st Dec 2015)/2 =1190000+9500000)/2=1070000 earnings before interest and tax=income before income and tax +other expenses(interest) =1130000+170000=1300000 common stockholders equity=total stockholders equity -preferred stock number of common stock=common stock/price per stock=500000/5=100000