1.

Based on the data the company has enough capital to pay their current liabilities
both year 1 and year two has enough capital. So, in this case we can say that the
company is in a good condition and can pay their obligations.

2. The company’s current ratio is 2. 64 and 3.21 which is good. This shows that the
company can pay on their accounts.

3. With a quick ratio of 1.65, year 1 appears to be in a decent position to cover its
current liabilities and its liquid assets. Sam as year 2 with a quick ratio of 1.57

4. The result of this formula is expressed as the number of times net credit sales
have been collected during that time period. For example, a ratio of 5 means that
the accounts receivable has been collected 5 times during that time period. It
also means, using the above-mentioned example, that the company has 20% of
its sales tied up on receivables.

5. All open accounts receivable is collected and closed every 73 days.

6. The analysis of inventory turnover is low because its 1.75, the company may be
overstocking or deficiencies in the product line and has a weak sales or
marketing effort.

7. The analysis of numbers of days in inventory is high, 209 days is too high for the
average days. It indicates that the company is not able to quickly turn its
inventory into sales. This can be due to poor sales performance or the purchase
of too much inventory.

8. The analysis of fixed assets turnover is low, 0.81 times is not good for the
company. It may be experiencing a decline in its business and its sales will fall
significantly in a year.
9. Just like in number 8, its supposed to be whole number. And in the case of teeth
and night it is decimal so it indicates low.

10. On the previous year, which is year B, the company was funded by creditors for
only 28%, and it is very low. Therefore, the company will be able to pay their
remaining debts/loans to creditors. However, In the next year, which is the year
A. the debt-to-equity ratio of the company increased. Meaning, 41% of the
company’s assets was funded by creditors, and the company need to pay more
debts/loans.

11. Good, because the difference between year A and year B isn’t that big.
Meaning, only 29% of the money comes from creditors, they only owe a small
amount to creditors.

12. A business wants to shoot for an equity ratio of about 0.5, or 50%, which
indicates that there’s more outright ownership in the business than debt. In other
words, more is owned by the company itself than creditors. Their equity ratio in
first year is .71 or 71% and its increases in the next year and it become .78 or
78%. In their equity ratio in consecutive years is good and has higher value. It
generally indicate that a company’s effectively funded its asset requirements with
a minimal amount of debt.

13. TIE ratio above 2.0x is considered to be the minimum acceptable range, with
3.0x+ being preferred. In the first year we can say the TIE of the company is
average while in the next year it increases. A higher times interest earned ratio
suggests that the company has plenty of cash to service its interest payments
and can continue to re-invests into its operations to generate consistent profits.

14. A 10% net profit margin is considered high (or good), and a 5% margin is low.
Here we have 12.87% which is in the average. An increasing ROS indicates that
a company is improving efficiency, while a decreasing ROS could signal
impending financial troubles.
 15. The analysis of the gross profit ratio is not good because it is below of 65% and
65% is considered as healthy company’s performance overtime.

16. The analysis in cost ratio is positive value because it indicates that the cost is
running under budget.

17. It can be said that base on the result 4.56%, the ROI of the company is in bad
condition. Because a good return on investment lost money, so you have less
that you would have if you had simply done nothing with your assets.

18. ROEs of 15-20% are generally considered good, but the result (6.13%) is below
the average so the ROE of the company is in bad condition. When a business’s
return on equity is negative, it means its shareholders are losing, rather than
gaining value. This is usually a very bad sign for investors and managers try to
avoid a negative return as aggressively as possible.

GENERAL ANALYZATION

The Financial Statements are written records that convey the

business activities and the financial performance of a company. Some
of them are the ROI or Return on Investment and ROE or Return on
Equity.
To determine the condition of your company whether it is in a
good or bad, you need to be solved the percentage of Return of
Investment and Return on Equity. Base on the Financial Statement
provided, the ROI and ROE has been solved. You can now identify the
condition of your company whether is in good or bad. To identify, if the
percentage of ROI and ROE is below 15%, the company is in the bad
condition but if the percentage is 15% and above, the condition of the
company is the good. In this case, the percentage of ROI and ROE of
Mighty Warrior Corporation is below 15%. Therefore, the Mighty
Warrior Corporation is in the bad condition.