Part I: Work out Dear student, an analysis of financial statement with the help of ‘accounting ratio’ is termed as Ratio Analysis. Ratio Analysis is a process of determining and interpreting relationships between the items of financial statements. Its purpose is to provide a meaningful understanding of the performance and financial position of an enterprise. Thus, it is a technique for analyzing the financial statements by computing ratios. 1. Ethio Selam Company Consolidated Balance Sheet For 2021, September 30 (ETB millions) Assets Cash and cash equivalents Br. 842,000,000 Receivables 3,599,000 Inventories 702,000,000 Film and television costs 1,162,000 Other 1,258,000 Total current costs 7,563,000 Film and television costs 5,339,000 Investments 2,270,000 Theme parks, resorts, and other property, at cost Attractions, buildings, and equipment 16,160,000 Accumulated depreciation (6,892,000) 9,718,000 Project in process 1,995,000 Land 597,000,000 Intangibles assets, net 16,117,000 Other assets 1,428,000 Total assets 25,027,000 Liabilities and stockholders’ equity Accounts payable and accrued liabilities 5,161,000 Current portion of borrowing 2,502,000 Unearned royalties 739,000,000 Total current liabilities 8,402,000 Borrowings 6,959,000 Deferred income taxes 2,833,000 Other long-term liabilities 2,377,000 Minority interest 356,000,000 Common shareholders’ equity Common shares ($.01 par value) 12,101,000 Retained earnings 12,767,000 Cumulative translation and other adjustments (28,000) Treasury shares (740,000) 24,100,000 Total liabilities and stockholders’ equity 45,0270000 • Net income, Br. 920,000,000 • Cost of goods sold, Br. 21,321,000 • Net sales, Br. 25,402,000 • Inventory on 2021 September 30, Br. 796,000,000 • Total interest expense for the year, Br. 598,000,000 Calculate the following ratios and show your computations. For calculations normally involvi