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1. Comparative statements for Warmer Corporation are shown below: Warmer Corporation Comparative Income Statements For...

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1. Comparative statements for Warmer Corporation are shown below: Warmer Corporation Comparative Income Statements For the years ended December 31 Year Year Year 1 Sales $14.80 $13.229$13.994 Cost of goods sold _8.2258.66 _8.375 Gross profit 6,575 4,568 5.619 Operating expenses_3.66 3.576_3.487 Operating incomes 290 _992 2.132 Calculate trend percentages for all income statement amounts shown. Use Year 1 as the base year. Comment on the results. 2. Use the balance sheets of Glover shown below to calculate the following ratios for Year 2 (round to the hundredths): (a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio. Glover Company Balance Sheets For the years ended December 31 Year 2 Year! Assets Cash s 43.000 22.000 Accounts receivable 38,000 42,000 Merchandise inventory 61,000 $2,000 Prepaid insurance 6,000 9,000 Long-term investments 49.000 20.000 Plant assets inst) 218.000 218.000 Total assets $415.0005363.000 Liabilities and Equity Current liabilities 620 75.000 Lone-term liabilities 45.000 36.000 Common stock 150.000 150.000 Retained carings 158,000 102.000 Total liabilities and equity $415.000 363.000

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