Funding source for small business, Understanding Financial RatiosFinancial 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.Reread “All is Not Paradise in Eden’s Garden,” parts 1 and 2, attached.Assume the role of Shelly Edison. Using the financial statements for Eden’s Garden, calculate the following ratios:Current RatioQuick RatioDebt RatioTimes Interest Turnover RatioAverage Inventory TurnoverAverage Collection PeriodAverage collection period in daysAverage Payable PeriodPayable period in daysNet Sales to Net AssetsNet Sales to Working CapitalNet Profit on SalesNet Profit on EquityWhat recommendations can you make to the Eden’s to improve their company’s financial performance in the future?Your paper should be 3-5 pages in length and in conformity with guidelines for APA Style. Calculations of the ratios should be shown in an appendix in APA format, while the body of the paper is used for explanations and recommendations.
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