The highlighted areas on the excel spreadsheet is all that needs done. It will adjust as its done. The two pics are the information that I am supposed to use to complete the spreadsheet
Sheet1 Instructions: Fill in the cells with $ (yellow highlighted) and the ratios will automatically calculate Financial Ratios AnalysisCurrent YearPrevious YearPrevious Year 20142013 Liquidity Ratios Current Ratio: Current Assets/Current Liabilites1.161--extent to which a firm can meet short-term obligations - generally one wants an upward trend Quick Ratios: Current assets minus inventory/current liabilities0.747--extent to which a firm can meet short-term obligations w/o selling inventory - generally one wants an upward trent $ Current Assets$ 2,247,047 $ Current Liabilites$ 1,935,647 $ Inventory$ 801,036 Leverage Ratios Debt-to-Total Assets Ratio: Total Debt/Total Assets0.730--% of total funds provided by creditors - generally one wants a downward trend Debt-to-Equity Ratios: Total Debt/Total Stockholders' Equity2.705--% of total funds provided by creditors vrs. by owners - generally one wants a downward trend Times-Interest-Earned Ratio: Profits before interest & taxes/Total Interest Charges16.635--extent to which earnings can decline w/o firm being unable to pay interest - generally one wants and upward trend $ Total Debt$ 4,109,986 $ Total Assets$ 5,629,516 $ Total Stockholders' Equity$ 1,519,530 $ Profits before Interest and taxes $ 1,389,575 $ Total Interest Expense$ 83,532 Activity Ratios Inventory Turnover: Sales/Inventory of Finished Goods10.163--whether firm holds extensive inventory and is selling it slower than industry - generally one wants and upward trend Fixed Assets Turnover: Sales/Fixed Assets3.751--Sales productivity and plan and equipment utilization - generally one want to see an upward trend Total Assets Turnover: Sales/Total Assets1.351--whether firm is generating sufficient vol. of busin. for size of asset investment - generally one wants an upward trend Average Collection Period: Accounts Receivable/(Total credit sales/365 days) 26.430--average time it takes for firm to collect on credit sales - generally one wants a downward trend $ Sales$ 7,421,768 $ Inventory of Finished Goods$ 730,289 $ Fixed Assets$ 1,978,623 $ Total Assets$ 5,493,502 $ Accounts Receivable$ 537,426 $ Total Credit Sales (uless othewise indicated, same as sales)$ 7,421,768 Profitability Ratios Gross Profit Margin: Sales minus cost of good sold/Sales1.000--total margin available to cover operating expenses and yield a profit - generally one wants an upward trend Operating Profit Margin: Earnings before interest and taxes (EBIT)/Sales0.000--profitability w/o concern for taxes and interest - generally one wants and upward trend Net Profit Margin: Net Income/Sales0.000--after-tax profits per dollar of sales - generally one wants an upward trend Return on Total Assets (ROA): Net income/Total Assets 0.000--after-tax profits per dollar of assets (ROI) - generally one wants and upward trend Return on Stockholders' Equity (ROE): Net Income/ Total Stockholders' Equity0.000--after-tax profits per dollar of stockholders' investment in the firm - generally one wants and upward trend Sales Revenue (already entered above - no need to re-enter data)7,421,768.00- 0- 0 $ Cost of goods sold or cost of sales $ EBIT (Earnings Before Interest and Taxes) $ Net Income (Earnings After Interest and Taxes) Total Assets (already entered above - no need to re-enter data)5,629,516.00- 0- 0 Total Stockholders' Equity (already entered above - no need to re-enter)1,519,530.00- 0- 0 $ Other Operating Expenses Revenue/Expense Sales Revenue (percentage change)---annual percentage growth rate in sales - generally one wants an upward trend Cost of Sales (percentage change)---annual percentage growth rate in cost of sales - generally one wants a downward trend Operating Profit (percentage change)---annual percentage growth rate in operating profit - generally one wants an upward trend Net Income (percentage change)---annual percentage growth rate in net income - generally one wants an upward trend Generic Financial Analysis Spreadsheet Sheet2 Sheet3