Financial Statements and Ratios – Happy Hamburger

Happy Hamburger Company

Using the financial statements for Happy Hamburger Company below:

  1. Calculate the indicated ratios for Happy Hamburger.
  2. Discuss Happy Hamburger’s strengths and weaknesses as revealed by your analysis.
  3. Suppose Happy Hamburger doubles its sales as well as its inventories, accounts receivable, and common equity during the year.  How would that information affect the validity of your ratio analysis?
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