Based on formulas given in Appendix B, compute the following ratios in Excel for two years. Debt ratio 2. Gross profit margin 3. Free cash flow 4….

 Based on formulas given in Appendix B, compute the following ratios in Excel for two years. 1.  Debt ratio 2.  Gross profit margin 3.  Free cash flow 4.  Times interest earned 5.  Accounts receivable turnover 6.  Inventory turnover B. Write 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. Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is: 1.  stronger / weaker 2.  quicker /slower 3.  more / less liquid 4.  more / less risk D.  Submit a report. Report must be 3 pages report evaluating trends in all of the above ratios. Discuss whether your company’s profitability, efficiency, liquidity, and solvency are improving or deteriorating.

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