Last week, you were assigned a new client, Jim's Auto Body.You will use the financial statements that wereprovided for 2017 to do a ratio analysis for his company.You are to show the formulas for each of the ratio analyses listed below (you do not need to do all of the calculations, however), and choose the 3 that you feel will provide the most information to the owner.Using the financial statements provided, do the calculations for those 3 ratios, and show your work in an Excel document.

Jim's Auto Body

Income Statement

As of April 30, 2017

Revenues:

Service Revenue: 36,000

Total Revenue: 36,000

Expenses:

Salary Expense: 4,700

Rent Expense: 2,000

Utility Expense: 900

Depreciation Expense: 200

Insurance Expense: 250

Supply Expense: 510

Total Expense: 8,560

27,440

Jim's Auto Body

Balance Sheet

As of April 30, 2017

Assets:

Cash: 145,000

Acct Receivable 34,000

PP In: 1,100

Equipment: 62,000

Accu. Dep. : (750)

Supplies: 2,300

Total Assets: 243,650

Liabilities and Stockholders' Equity

Liabilities:

Accounts Payable: 22,000

Salary Payable: 4,500

Total Liabilities: 265,00

Stockholders' Equity

Common stock: 198,150

Retained Earnings: 19,000

Total Stockholders' Equity: 217,150

Total Liabilities & Stockholders' Equity: 243,650

Part 2

In a memo to the owner, Jim Davis, explain the results of your ratio analysis. Your memo should be a minimum of 400 words in APA style.