Option #2: Understanding Financial Ratios for a Small Busine

Option #2: Understanding Financial Ratios for a Small BusinessFinancial plans and statements are an important part of identifying how much money is needed, and of determining the health of the company through company valuation. Completing financial statements is part of the role of the entrepreneur in raising capital.Locate a small business where you can access the financial statements or use your own small business.Using these financial statements, calculate the following ratios:Current RatioQuick RatioDebt RatioTimes Interest Turnover RatioAverage Inventory TurnoverAverage Collection PeriodAverage collection period in daysAverage Payable PeriodAverage payable period in daysNet Sales to Net AssetsNet Sales to Working CapitalNet Profit on SalesNet Profit on EquityWhat recommendations can you make to improve the company’s financial performance in the future?Your paper should be 3-5 pages in length and APA formatted.