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Option #1: Corporate Finance Application Ratio Analysis  Attached are the financial statements for Smith Company, Inc

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Option #1: Corporate Finance Application

Ratio Analysis 

Attached are the financial statements for Smith Company, Inc. Use the financial statements to calculate the attached ratios. Write a couple sentences interpreting the ratio.

• Calculate and interpret the following debt ratios: debt ratio, debt-equity ratio, and times interest earned.
• Calculate and interpret the following profitability ratios: operating profit margin, net profit margin, return on assets, and return on equity.