Here’s a link to the annual report for Lancaster Colony w

Here’s a link to the annual report for Lancaster Colony, which is a mid-sized company in the Food industry. You can find the financial statements halfway through the annual report.http://www.lancastercolony.com/investors/sec-filings-and-annual-reports/annual-reports/default.aspxAssume a new vice-president is leading your unit and you have been asked to provide her with a reviewof your corporation’s financial statements. The VP professes to know “next to nothing” aboutaccounting and financial reports but trusts your new-found skills in understanding the statements.Prepare a written report that: Identifies the primary financial statements, their purpose, and the elements and types of lineitems contained in the statements. Discuss how the structure of the statements is affected bythe type of legal structure of your company and the type of business it conducts. Explains the connection between the statement of earnings and the balance sheet and also howthe statement of cash flows connects to the statement of earnings and balance sheet. Calculates the fourteen ratios listed on the following page and discusses the trends andpositive/negative nature of the ratios (individually, but in the context of the four categories). Inyour separate ratio listing, show the detail (numerator and denominator) used for each of theratios, and calculate two years of ratios so that a basic sense of the trend can be seen. Roundthe numbers in an appropriate manner, and show percentages as percentages.Assessment:Grading will be based on the accuracy of the calculations (42 points: 14 ratios x 3 points each) and onthe quality of the narrative (33 points: Structure/flow of the report and presentation of the ratios,quality of the writing (sentence structure, appropriate language), and professionalism of the financialstatement review.RATIOSLiquidity1) Working Capital2) Current Ratio3) Quick Ratio4) Free Cash FlowActivity5) Accounts Receivable Turnover6) Days Sales in A/R7) Inventory Turnover8) Days Sales in InventorySolvency9) Debt to Equity Ratio10) Interest Coverage Ratio (Times Interest Earned)Profitability11) Gross Profit Margin12) Return on Assets13) Return on Equity14) “EBITDA”