2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)Profitability Ratios Current Yr. Prior Yr. Fav/Unfav.Gross Margin (%){Gross Income/Sales Revenue} Profit Margin (%){Net income/ Sales Revenue} Return on Assets (%){Net Income/ Average Total Assets} 2- RatiosComplete the following ratios for the last TWO years and indicate whether the trend is favorableor unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8X).FAVORABLECurrent Year(G)Prior Year(C)(UNFAVORABLE)Profitability RatiosGross Margin (%){Gross Income / Sales Revenue}Profit Margin (%){Net Income / Sales Revenue}Return on Assets (%){Net income / Average Total Assets} 1- Key Statistics: (OMIT ALL ZEROS 000): if none, leave blankIncome StatementPrior Year623 MCurrent YearIncrease(Decrease)2651M+ £2028% 325.81%.Sales/Revenue926m705.22%.Cost of Goods Sold1725 M507m m$1218239.571.Gross IncomeNet IncomeEnd ofIncrease (Decrease)S.End ofBalance SheetCurrent YearPrior Year4295M9 04 m +$339l 375.17Cash & Short-term investmentsTotal Accounts Receivable295M145.837.120m +$175Invehtories1,OSIM 360s 343.01%.126m rý122 96.83%.Total Current Assets4656mNet Property, Plant & Equipment 24 8mIntangible Assets35MN IATotal Assets5,298M129 0m tf4008 310.701.Accounts Payable3507.Total Current Liabilities126 0m1437m334 m r926 277.25.456m 9 215.13%.834m 3027 362.951.Total LiabilitiesTotal Shareholders' Equity3861 m*$3027Asset Composition:End of Current YearLargest Assets: (from above)Cah + short termnrestmentstutal accountse_receivableret property,% of Total Assets4,29529524881.077.S. 57%.Plaht'iequip ment4.68 7.

Ratio analysis is the analysis in which ratios are computed to compare the results of different…

Answered: 2- Ratios - Complete the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2) Ratios

Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)

Profitability Ratios Current Yr. Prior Yr. Fav/Unfav.

Gross Margin (%)

{Gross Income/Sales Revenue}

Profit Margin (%)

{Net income/ Sales Revenue}

Return on Assets (%)

{Net Income/ Average Total Assets}

2- Ratios
Complete the following ratios for the last TWO years and indicate whether the trend is favorable
or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8X).
FAVORABLE
Current Year
(G)
Prior Year
(C)
(UNFAVORABLE)
Profitability Ratios
Gross Margin (%)
{Gross Income / Sales Revenue}
Profit Margin (%)
{Net Income / Sales Revenue}
Return on Assets (%)
{Net income / Average Total Assets}

1- Key Statistics: (OMIT ALL ZEROS 000): if none, leave blank
Income Statement
Prior Year
623 M
Current Year
Increase(Decrease)
2651M
+ £2028
% 325.81%.
Sales/Revenue
926m
705.22%.
Cost of Goods Sold
1725 M
507m m$1218
239.571.
Gross Income
Net Income
End of
Increase (Decrease)
S.
End of
Balance Sheet
Current Year
Prior Year
4295M
9 04 m +$339l 375.17
Cash & Short-term investments
Total Accounts Receivable
295M
145.837.
120m +$175
Invehtories
1,OSIM 360s 343.01%.
126m rý122 96.83%.
Total Current Assets
4656m
Net Property, Plant & Equipment 24 8m
Intangible Assets
35M
N IA
Total Assets
5,298M
129 0m tf4008 310.701.
Accounts Payable
3507.
Total Current Liabilities
126 0m
1437m
334 m r926 277.25.
456m 9 215.13%.
834m 3027 362.951.
Total Liabilities
Total Shareholders' Equity
3861 m
*$3027
Asset Composition:
End of Current Year
Largest Assets: (from above)
Cah + short term
nrestments
tutal accounts
e_receivable
ret property,
% of Total Assets
4,295
295
248
81.077.
S. 57%.
Plaht'i
equip ment
4.68 7.

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