Once you’ve completed the production of the financial statements for this project, including the Balance Sheet, Income Statement, and Statement of Retained Earnings, you’ll need to “cap off” the effort by documenting a brief analysis displaying several salient aspects of the financial health of the business.

To accomplish this, you’ll need to perform a bit of research to locate the set of standard financial ratios (or measures) used across industry, and specifically select two liquidity ratios/measures (e.g., Current Ratio), two solvency ratios/measures (e.g., Debt Ratio), and two profitability ratios/measures (e.g., Gross Profit Ratio). These metrics are available in nearly any financial accounting textbook or reputable online web site discussing financial ratios.

Prepare a brief Word document (1 – 2 pages) concisely displaying the six financial ratios/measures you’ve chosen, indicate which category they each fall into (i.e., liquidity, solvency, or profitability), and apply the appropriate dollar values taken from your completed financials to calculate the result for each metric. Be sure to show the formulas and explain what each measure indicates about the business. This Word document will be submitted as part of your project.

I have attached the excel document from where you will pull data from to help towards the ratios needed in the paper.

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