Write a Financial Statement Analysis Project.

Remember, these numbers on the financial statements are rounded to the nearest million, so it is a bit silly to show calculations with more precision than the underlying data.Common Size Income StatementPrepare a spreadsheet with common size income statements for the 2018 and 2017 fiscal years. In this case, your denominator will be Net Sales. Again, remember to round.Horizontal Analysis of both financial statementsPrepare a horizontal analysis of the balance sheet and income statement, showing the percentage change from 2017 to 2018 (the dollar amounts, not the percentages you calculated in the common size statements). This is calculated as follows:2018 amount – 2017 amount2017 amountThus, each line item on the balance sheet and income statement should show a percentage increase or decrease. A negative number, or decrease, can be formatted to show in parentheses, which is the preferable notation in accounting circles.Solvency RatiosCalculate all of the solvency ratios listed in on the Ratio sheet in Royal Caribbean 10-k data analyzed -2.xlsPreview the documentCalculate Accounts Receivable Turnover (note: this one is missing from your textbook but is calculated as Net Sales / Average Accounts Receivable)In any place where the formula calls for an average, use the 2017 number plus the 2018 number divided by 2.Helpful Hint: There are no marketable securities, so the acid test ratio is just (cash + receivables) / current liabilities. Use both lines of receivables in any ratio involving receivables.Performance Ratios Calculate the following performance ratios from Chapter 14:Asset TurnoverReturn on Sales contains a typo in the book. The formula should say (Net Income + Net-of-tax interest expense)/Sales.Return on AssetsReturn on EquityAverage Interest RateAlso calculate Gross Margin (this is also missing from your book but is a widely used ratio. It is gross profit divided by Net Sales)For the tax rate used in the ROA, assume their effective income tax rate is 35% because tax reform did not take effect until 2018.The listed items should be submitted in an Excel file, with separate tabs for the income statement (including common size 2016 and 2017, as well as the horizontal analysis in one tab), balance sheet (common size 2016 and 2017 plus horizontal analysis in another tab), and ratios in another tab (clearly labelled!)