Submit a paper which is 3-4 pages in length (no more than 4-pages), exclusive of the reference page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no greater than 12 points in size. The paper should cite at least three sources in APA format. One source can be your textbook.

In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case studys question with a recommendation.

Please refer to the attached income statement and balance sheet for the Diamond Gem Cleaning and Maintenance Company below

Perform a financial ratio analysis of the company using the following ratios: (1) Gross profit margin, (2) Current ratio, and (3) Debt ratio.

Select significant lines from the financial statements and provide an observation of their trends (Is the account increasing or decreasing in value? What does this mean?)

Draw some conclusions based on your observations.

Support your observations with research, data, and logic. Research should be from at least four sources outside textbook materials and should address financial ratio and trend analysis. Discuss what limitations exist with the informational material provided. What other material would be important to your trend analysis?

Superior papers will do the following:

Provide a financial ratio analysis of the company using: (1) Gross profit margin, (2) Current ratio, and (3) Debt ratio.

Provide a narrative about, and observations of, significant lines from the statements.

Provide conclusions that are supported with research, data and logic.

Provide a brief discussion of what limitations exist with the informational material provided.

Be sure to use APA formatting in your paper. Purdue Universitys Online Writing LAB (OWL) is a free website that provides excellent information and resources for understanding and using the APA format and style.

Contract Revenues 5,146,862 Contract Costs 4,532,519 Gross Profit 614,343 General and Administrative Expenses Operating Incomee Other Expense Income Before Provision for Income Taxes266,217 322,356 291,987 25,770 Provision for Income Taxes 115,450 150,767 Retained Earnings, Beginning Balance 159,867 Net Income 150,767 Retained Earnings, Ending Balance 310,634 Contract Revenues 5,146,862 Contract Costs 4,532,519 Gross Profit 614,343 General and Administrative Expenses Operating Incomee Other Expense Income Before Provision for Income Taxes266,217 322,356 291,987 25,770 Provision for Income Taxes 115,450 150,767 Retained Earnings, Beginning Balance 159,867 Net Income 150,767 Retained Earnings, Ending Balance 310,634