Assignment: Using the financial information from Problem 42 (pages 99-100): 1. Calculate the 12 ratios listed in the outline (use the form provided). In your calculation of ratios, use end of year amounts rather than average amounts. 2. Answer the following questions: a) If you were being asked to determine whether your company should grant short-term credit to Wizard Industries, which ratios would you consider as most important? b) Based on these ratios, would you grant short-term credit to Wizard? c) If you were being asked to determine whether your company should grant long-term credit to Wizard Industries, which ratios would you consider as most important? d) Based on these ratios, would you grant long-term credit to Wizard? e) If you were being asked to determine whether your company should purchase shares in Wizard Industries as an investment, which ratios would you consider as most important? 1) Based on these ratios, would you recommend purchasing shares of Wizard? 8) Consider Wizard's dividend policy - do you consider it to be reasonable? h) Where is the money likely coming from to pay the dividends? Assignment: Using the financial information from Problem 42 (pages 99-100): 1. Calculate the 12 ratios listed in the outline (use the form provided). In your calculation of ratios, use end of year amounts rather than average amounts. 2. Answer the following questions: a) If you were being asked to determine whether your company should grant short-term credit to Wizard Industries, which ratios would you consider as most important? b) Based on these ratios, would you grant short-term credit to Wizard? c) If you were being asked to determine whether your company should grant long-term credit to Wizard Industries, which ratios would you consider as most important? d) Based on these ratios, would you grant long-term credit to Wizard? e) If you were being asked to determine whether your company should purchase shares in Wizard Industries as an investment, which ratios would you consider as most important? 1) Based on these ratios, would you recommend purchasing shares of Wizard? 8) Consider Wizard's dividend policy - do you consider it to be reasonable? h) Where is the money likely coming from to pay the dividends