In completing Excel Lab 1, I learned [Set up set how to set up the spreadsheet on excel which was very new to me. I applied these skills in Managerial Accounting by creating a Ratio Analysis spreadsheet Ratios are computed by dividing one element on a spreadsheet by another. Safety Ratios, for instance, measure how safe a company is from going bankrupt. They compare what a company owes, its liabilities, to what it owns, its assets. In looking at the Current Ratio on the Safety spreadsheet, I noticed that Natalie's company has about [$1.50) in assets for every dollar that they owe [In looking at the Current Ratio on the Safety spreadsheet, I noticed that Lucy's company has about [$ 50 in assets for every dollar that they owe. When we look at the acid test ratio, which factors out Inventory, I see that (In looking at the Current Ratio on the Safety spreadsheet, I noticed that Geralyn's company has about [$1.00] in assets for every dollar that they owe) The issue is that Geralyn's company lyour answer) If I had to lend money to one of these companies, I would most likely lent it to (which company? because (why?) Finance managers and executives need to be concerned about their company's safety ratios because companies with good ratios (explain the effect of a good safety ratio on the ability to borrow money 1 In looking at the productivity of these three companies. I determined that the most productive company is run by [name] because every dollar of assets generates famount in sales. The least productive company is run by (name] because he gets to keep only famount of every dollar that he earns in sales 3 VINCENT'S MARIO'S ANTHONY COMPANY COMPANY COMPANY 5 5 6 TOTAL ASSESTS 7 Sales 8 Net Profit After Taxes 9 $150,000.00 $60,000.00 $80,000.00 $100,000.00 $20,000.00 $20,000.00 $80,000.00 $10,000.00 $2,000.00 10 PRODUCTIVITY RATIOS 11 Profit Margin on Sales 12 Total Asset Turnover $0.80 $0.50 $0.33 13 $0.67 $0.10 $0.25 14 15 16 17 18 19 20 21 22 23 24 25 Sheet1 Type here to search o 1 NATALIE'S COMPANY LUCY'S GERALYN'S COMPANY COMPANY 5 CURRENT ASSETS 6 Cash 7 Accounts Receivable 8 Inventory 9 Total Current Assets 10 $10,000.00 $ 5,000.00 $ 1,000.00 $10,000.00 $ 5,000.00 $ 1,000.00 $10,000.00 $ 5,000.00 $18,000.00 $ 30,000.00 $15,000.00 $ 20,000.00 11 CURRENT LIABILITIES 12 Account Payable 13 Notes Payable Total Current Liabilities 14 15 $ 10,000.00 $10,000.00 $10,000.00 $ 10,000.00 $ 20,000.00 $10,000.00 $ 20,000.00 $30,000.00 $ 20,000.00 16 SAFETY RATIOS 17 Current Ratio 18 Acid Test Ratio 19 $ $ 1.50 $ 1.00 $ 0.50 $ $ 0.33 1.00 0.10 21 A 25