Problem#$1$: $(20$ pts$)$

Using the Internet, find a retail$-$based public corporation$$s financial statements and for $2$ YEARS

calculate the following ratios $($as we discussed in class$).$ Be sure to take the ratios out to at least

one decimal point. Be sure to show your work.

$1.$ Gross Profit percentage

$2.$ Profit margin on sales

$3.$ Inventory turnover

$4.$ Average number of days in inventory

$5.$ Current ratio

Problem #$2$: $(15$ pts$)$

In a MEMO format, provide at least a full one$-$page, typed conclusion on how your company

performed from one year compared to the other year. Would you invest in this company? Why

or why not?

Be specific, based on your ratios and any other observations.

Be sure to review and spell$-$check your MEMO.

Single$-$spaced, $12-$point font

MEMO

TO:

FROM:

DATE:

RE:

Problem #$3$: $(20$ pts$)$

Using your same Internet company, assume the following:

Assume the $$total assets$$ number was a machine purchased on $8/1/22.10\%$ salvage value. $5$

year estimated life. Assume your company is a calendar year$-$end.

For the years $2022$ and $2023$ ONLY:

Required:

$1.$ Using Straight$-$line method, calculate the year$-$end Depreciation Expenses

$2.$ Using Double$-$Declining Balance method, calculate the year$-$end Depreciation Expenses

$3.$ Using Sum of the Year$$s Digits method, calculate the year$-$end Depreciation Expenses

$4.$ For Straight$-$line only: show the asset$$s Net Book Value at $12/31/23$

$5.$ For Straight$-$line only: assume the machine was sold on $6/30/24$ for $70\%$ of its original

cost$.$

a$.$ Show the entry to record the sale of the asset, including any gain or loss on the

asset sale

$--$be sure to show all your work for credit$--$