Individual Assignment: Please answer the question using the following rubric: In a report no longer than 500 words, please complete the mini case study below. Please answer the questions below and make sure that your report is flowing Please use APA format in your responses. All submissions will be evaluated through TurnitIn. Please do no copy anyones assignment. Use the format below when answering the question: Assess the situation Analyze the issues Conclude and recommend Have an Appendix Section showing all your calculations. All responses should be submitted in MS word.

Case Study: You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Galena Ski Products, which manufactures skis and bindings. Because you may need to sell the shares within the next two years to finance your university education, you start your analysis of the company data by calculating (1) working capital, (2) the current ratio, and (3) the quick ratio.

Galena's statement of financial position is as follows: Current assets Cash $ 154,000 Inventory 185,000 Prepaid expenses 21,000 Non-current assets Land 50,000 Building and equipment 145,000 Other 15,000 Total $ 570,000 Current liabilities 165,000 Long-term debt 190,000 Share capital 80,000 Retained earnings 135,000 Total $ 570,000

Here are some questions you need to answer while formulating your responses: a) What amount of working capital is currently maintained? Comment on the adequacy of this amount. b) Your preference is to have a quick ratio of at least 0.80 and a current ratio of at least 2.00. How do the existing ratios compare with your criteria? Based on these two ratios, how would you evaluate the companys current asset position? c) The company currently sells only on a cash basis and had sales of $900,000 this past year. How would you expect a change from cash to credit sales to affect the current and quick ratios? d) Galenas statement of financial position is presented just before the company begins making shipments to retailers for its fall and winter season. How would your evaluation change if these balances existed in late February, following completion of its primary business for the skiing season? e) How would Galenas situation as either a public company or private company affect your decision to invest?