Based on the table attached, we need to perform a financial ratio analysis of a small bakery.
Based on the financial statement attached, calculate the following for 2018 and 2019:
– Profit Margin
– Return on owner’s capital
– Current Ratio
– Quick Ratio
– Inventory Turnover
The information presented on the table attached relates to the business of Colossus Bakery, and the owner is concerned about the profitability and financial structure of her business as of 12/31/2019, especially since the bank requires repayment of the business’s overdraft of $25,375.
Once you’ve completed your calculations for both years, write a report to the owner highlighting strengths and areas of concern in relation to profitability, liquidity, and financial stability of the bakery.
