This is Finance HW about ratios, Uploaded is an excel sheet of the HW could you please help me, especially

in the interpretation of those ratio ( Brief comment) which I really need help with

Thank you in-advance  ATTACHMENT PREVIEW Download attachmentSTUDENT’S NAME: _________________________________________________STUDENT’S ID: ____________________________________________________Chapter 2 & 3INPUT DATA SECTION:Historical Data Used in the Analysis20142013Year-end stock price$23.06$26.00Shares outstanding (in millions)5050Tax rate40%40%COMMON SIZE BALANCE SHEETS – Allied Food Products – December 31(in millions of dollars)COMMON SIZE2014201320142013AssetsCash and equivalents$10 $80??4.76%Accounts receivable375315??18.75%Inventories615415??24.70%Total current assets$1,000 $810??48.21%Net plant and equipment1,000870??51.79%Other LT assets–??0.00%Total assets$2,000 $1,680100.00%This model is STRICTLY OPTIONAL.Neither students nor instructors need to go through it.However, ifsomeone wants to practice with Excel, then the model can be useful.Also, on the tabs we show solutions forthe within-chapter self-test questions, if applicable.This spreadsheet model sets up common size balance sheets and income statements for Allied (2013 and2014 statements) and conducts a full ratio analysis of Allied’s financial statements.Common Size Analysis is not illustrated in the text, but we show it because it is so easy to do with Excel.Thecommon size balance sheet shows each asset and liability item as a percentage of total assets, and thecommon size income statement shows the other items as a percentage of sales.Common size statements areuseful for getting an idea of how the various statement items match up, and they are especially good forcomparing companies that differ in size.ABCDEFGHI12345678910111213141516171819202122232425262728293031

View the AnswerLiabilities and equityAccounts payable$60 $30??1.79%Accruals140130??7.74%Notes payable11060??3.57%Total current liabilities$310 $220??13.10%Long-term bonds750580??34.52%Total liabilities$1,060 $800??47.62%130130??7.74%Retained earnings810750??44.64%Total common equity$940 $880??52.38%Total liabilities and equity$2,000 $1,680100.00%INCOME STATEMENTS – Allied Food Products – Years Ending December 31(in millions of dollars)COMMON SIZE2014201320142013Net sales$3,000.0 $2,850.0??100.00%Oper costs except depr’n & amort.2,616.22,497.0??87.61%Depreciation and amortization100.090.0??3.16%Operating income (EBIT)$283.8 $263.0??9.23%Less interest88.060.0??2.11%Earnings before taxes (EBT)$195.8 $203.0??7.12%Taxes78.381.2??2.85%Net income$117.5 $121.84.27%Common dividends$57.5 $53.01.92%1.86%Addition to retained earnings$60.0 $68.82.00%2.41%PER-SHARE DATA20142013Earnings per share (EPS)$2.35 $2.44Dividends per share (DPS)$1.15 $1.06Book value per share (BVPS)$18.80 $17.602014 FREE CASH FLOW (FCF)FCF =+ ΔNOWC ]FCF =$….?+ $ …..?– $…….? + $ …..?]FCF =$….?–$…..?FCF =$….?Common stock (50Mshares)EBIT(1–T)+Depr’n–[Cap ExABCDEFGHI3233343536373839404142434445464748495051525354555657585960616263646566676869707172

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