The purpose of this SLP is to apply ratio analysis to assess the financial health of ABC Company. Use the balance sheet presented in the case during this module to compute solvency and efficiency ratios. Compute three ratios based on balance sheet accounts for which you have sufficient information.
Assume that ABC Company is a small specialty retail store. IBIS is a comprehensive resource containing market research and statistics, which can be used to compare ABC Company to the industry and leaders in the industry. Comment on ABC’s ratios by answering the following questions.
Show the formulas for the computations. Two to three sentences are sufficient to respond to the three questions. Do not use an essay format.
Show sources when appropriate and APA format is suggested, but not required.