For this weeks assignment you are tasked with performing a financial ratio analysis of a small bakery.

Based on the financial statement below, calculate the following for 2018 and 2019:

• Profit Margin
• Return on owners capital
• Current Ratio
• Quick Ratio
• Inventory Turnover

The following information relates to the business of Colossus Bakery, and the owner is concerned about the profitability and financial structure of her business as of 12/31/2019, especially since the bank requires repayment of the businesss overdraft of $25,375.

	12/31/2019	12/31/2018
Revenue (sales on credit)	$120,000	$95,000
Cost of Sales	$65,000	$47,500
Other Expenses	$29,500	$20,800
Cash and Cash Equivalents	$(25,375)	$19,500
Inventories	$45,000	$36,500
Accounts Receivable (net)	$85,000	$29,000
Non-current assets (net)	$79,000	$35,600
Accounts Payable	$13,600	$15,450
Owner Capital	$95,000	$108,000
Non-current liabilities	$32,000	-

Once youve completed your calculations for both years what we can say about: profitability, liquidity, and financial stability of the bakery. Include recommendations to improve areas of concern.