You work in the mergers and acquisitions department of a large conglomerate who is looking to invest in a retail business. Two companies, Fashion Forward and Dream Designs, are the final two options being considered. You have the most recent available income statements and two years of balance sheets for each company.

Compute the following ratios for each company:

Profit Margin Ratio

Return on Assets

Current Ratio

Quick Ratio

AR Turnover Ratio

Average Collection Period

Inventory Turnover Ratio

Average Sales Period

Debt to Equity Ratio

For this assignment:

Compute all required amounts and explain how the computations were performed

Evaluate the results for each company and explain what each ratio means

Compare and contrast the companies.

Based on your analysis:

recommend which company the organization should pursue

Thoroughly support your conclusion, including what other factors should be considered

Be specific.

Superior papers will:

Perform all calculations correctly.

Articulate how the calculations were performed.

Evaluate the ratios computed and explain the meaning of the ratios.

Compare the companies.

Recommend which company to pursue, supported by well-thought-out rationale and considering any other factors that could impact the recommendation.

Jo . % PV li u bs stjl - 5110WA7-Financials (1) - ... BUS 5110 Written Assignment fx B 1 h Assignment 7 Financials Inco Fashion Forwar 31/12/2018 Revenue Credit Sales Non-Credit Sales Total Revenue 2,000.00 500.00 2,500,00 8 1,400,00 1,100,00 10 Cost of Sales 11 Gross Profit 12 13 Operating Expenses Research and Development 15 Selling, General, and Administrative 16 Total Operating Expenses 17 Earnings Before Interest and Taxes 19 Interest Expense 21 Income Before Tax 22 Income Tax Expense 23 Net Income 50,00 750.00 800,00 300,00 (18,00 282,00 (145,50 136,50 bad beljall - 5110WA7-Financials (1) fx BUS 5110 Written Assignment co E E Income Statements Fashion Forward Dream Designs 31/12/2018 31/12/2018 2,000,000 500,000 2,500,000 4,320,000 1,080.000 5,400,000 Cur Cas Acc Inve Oth Tot 1,400,000 1,100,000 3,250,000 2,150,000 Pro Goo Oth Toto 50,000 750,000 800,000 200,000 1,600,000 1,800,000 Cur Acc 300,000 350,000 Sho Oth Tot LOG (18,000) 282,000 (145,500) 136,500 (50,000) 300,000 (87,500) 212,500 Oth Tot Sto Cor Pre Rel Tot Tot 34 35 ha deja 5110WAT Financials (1) . 110w traill ha desas bus belgall. BUS 5110 Written Assignment Fashion For 31/12/20 Current Assets Cash and Cash Equivalents Accounts Receivable Inventory Other Current Assets Total Current Assets Property, Plant and Equipment Goodwill Other Long-Term Assets Total Assets 8 9 10 11 12 13 14 15 16 17 18 19 1,25 2,72 Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities 1.17 20 21 22 23 24 25 26 Stockholders Equity Common Stock Preferred Stock Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders Equity 2,76 . BUS 5110 Written Assignment fx H 3 In Forward 4 12/2018 Balance Sheets Fashion Forward Dream Designs 31/12/2017 31/12/2018 950,000 200,000 112,000 35,000 1,297,000 635,000 750,000 65,000 2,747,000 980,000 150,000 105,000 50,000 1,285,000 700,000 750,000 70,000 2,805,000 1,710,000 250,000 200,000 120,500 2,280,500 850,000 1,150,000 100,750 4,381,250 535,000 545,000 25,000 600,000 1,170,000 75,000 100,000 1,345,000 510,000 1,045,000 845,750 50,000 730,000 1,625,750 120,500 155,000 1,901,250 75,000 1,120,000 500,000 150,000 752,000 1,402,000 775,000 294,500 615,500 1,685,000 749,500 390.000 1,340,500 2,480,000 2,747,000 2,805,000 4,381,250 T (1) 51TOWA 7 - Financials [ BUS 5110 Written Assignment fx 3 am Designs 31/12/2018 Dream Designs 31/12/2017 1,710,000 250,000 200,000 120,500 2,280,500 850,000 1,150,000 100,750 4,381,250 1,705,000 275,000 215,000 100,000 2,295,000 900,000 1,150,000 105,000 4,450,000 845,750 50,000 730,000 1,625,750 120,500 155,000 1,901,250 875,000 60,000 740,000 1,675,000 130,000 165,000 1,970,000 749500 390,000 1340,500 2480,000 942 750 409 250 1128,000 2,480,000 4,381,250 4,450,000 Jo . % PV li u bs stjl - 5110WA7-Financials (1) - ... BUS 5110 Written Assignment fx B 1 h Assignment 7 Financials Inco Fashion Forwar 31/12/2018 Revenue Credit Sales Non-Credit Sales Total Revenue 2,000.00 500.00 2,500,00 8 1,400,00 1,100,00 10 Cost of Sales 11 Gross Profit 12 13 Operating Expenses Research and Development 15 Selling, General, and Administrative 16 Total Operating Expenses 17 Earnings Before Interest and Taxes 19 Interest Expense 21 Income Before Tax 22 Income Tax Expense 23 Net Income 50,00 750.00 800,00 300,00 (18,00 282,00 (145,50 136,50 bad beljall - 5110WA7-Financials (1) fx BUS 5110 Written Assignment co E E Income Statements Fashion Forward Dream Designs 31/12/2018 31/12/2018 2,000,000 500,000 2,500,000 4,320,000 1,080.000 5,400,000 Cur Cas Acc Inve Oth Tot 1,400,000 1,100,000 3,250,000 2,150,000 Pro Goo Oth Toto 50,000 750,000 800,000 200,000 1,600,000 1,800,000 Cur Acc 300,000 350,000 Sho Oth Tot LOG (18,000) 282,000 (145,500) 136,500 (50,000) 300,000 (87,500) 212,500 Oth Tot Sto Cor Pre Rel Tot Tot 34 35 ha deja 5110WAT Financials (1) . 110w traill ha desas bus belgall. BUS 5110 Written Assignment Fashion For 31/12/20 Current Assets Cash and Cash Equivalents Accounts Receivable Inventory Other Current Assets Total Current Assets Property, Plant and Equipment Goodwill Other Long-Term Assets Total Assets 8 9 10 11 12 13 14 15 16 17 18 19 1,25 2,72 Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities 1.17 20 21 22 23 24 25 26 Stockholders Equity Common Stock Preferred Stock Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders Equity 2,76 . BUS 5110 Written Assignment fx H 3 In Forward 4 12/2018 Balance Sheets Fashion Forward Dream Designs 31/12/2017 31/12/2018 950,000 200,000 112,000 35,000 1,297,000 635,000 750,000 65,000 2,747,000 980,000 150,000 105,000 50,000 1,285,000 700,000 750,000 70,000 2,805,000 1,710,000 250,000 200,000 120,500 2,280,500 850,000 1,150,000 100,750 4,381,250 535,000 545,000 25,000 600,000 1,170,000 75,000 100,000 1,345,000 510,000 1,045,000 845,750 50,000 730,000 1,625,750 120,500 155,000 1,901,250 75,000 1,120,000 500,000 150,000 752,000 1,402,000 775,000 294,500 615,500 1,685,000 749,500 390.000 1,340,500 2,480,000 2,747,000 2,805,000 4,381,250 T (1) 51TOWA 7 - Financials [ BUS 5110 Written Assignment fx 3 am Designs 31/12/2018 Dream Designs 31/12/2017 1,710,000 250,000 200,000 120,500 2,280,500 850,000 1,150,000 100,750 4,381,250 1,705,000 275,000 215,000 100,000 2,295,000 900,000 1,150,000 105,000 4,450,000 845,750 50,000 730,000 1,625,750 120,500 155,000 1,901,250 875,000 60,000 740,000 1,675,000 130,000 165,000 1,970,000 749500 390,000 1340,500 2480,000 942 750 409 250 1128,000 2,480,000 4,381,250 4,450,000