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Smith Year 3 Year 2 Year 1 Rogers Year 3 Year 2 Year 1 Income Statement Revenue Cost of goods sold Selling & admin expenses Tax expense Interest expense Net Income 11,860 10.740 8,840 8.100 2,570 2.540 15 10 30 160 80 9,780 6,940 2,600 20 15 205 14,200 10,850 2,400 70 220 660 15,800 11.750 2.600 60 450 740 16,200 12,300 2.550 75 400 875 75 Balance Sheet Assets Cash Accounts receivable Inventory Property & equipment (net) Total Assets 980 305 1,690 1,300 4,275 965 230 1,480 1.150 3.825 970 350 1.210 915 3,445 3,730 500 2,890 4,280 11,400 3.345 375 3.155 3.720 10.595 2,815 450 2.400 3,620 9,285 Liabilities Accounts payable Long term abilities 1,590 520 1.315 445 1.280 265 2.600 3,220 3.235 2.610 2.925 2.485 Stockholders' Equity Common stock Retained earnings Total Liab. & Equity 815 1,350 4,275 815 1.290 3.865 815 1,085 3,445 1,290 4.200 11,400 1.290 3.480 10.595 1,290 2,585 9,285 For a horizontal analysis for Smith, what is the percent change in the cost of goods sold for year 2? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What are the days in inventory ratio for Smith for year 3? Round your final answer to one decimal place. What is the current ratio for Rogers for year 1? What is the average collection period for Rogers for year 2? Round your final answer to one decimal place. Round your final answer to two decimal places. What is the debt to assets ratio for Smith for year 3? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What is the times' interest earned ratio for Rogers for year 2? Round your final answer to one decimal place. What is the gross profit rate for Smith for year 1? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What is the net profit margin ratio for Rogers for year 3? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What is the return on assets ratio for Smith for year 3? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). Which company would you rather invest in? Briefly explain. Smith Year 3 Year 2 Year 1 Rogers Year 3 Year 2 Year 1 Income Statement Revenue Cost of goods sold Selling & admin expenses Tax expense Interest expense Net Income 11,860 10.740 8,840 8.100 2,570 2.540 15 10 30 160 80 9,780 6,940 2,600 20 15 205 14,200 10,850 2,400 70 220 660 15,800 11.750 2.600 60 450 740 16,200 12,300 2.550 75 400 875 75 Balance Sheet Assets Cash Accounts receivable Inventory Property & equipment (net) Total Assets 980 305 1,690 1,300 4,275 965 230 1,480 1.150 3.825 970 350 1.210 915 3,445 3,730 500 2,890 4,280 11,400 3.345 375 3.155 3.720 10.595 2,815 450 2.400 3,620 9,285 Liabilities Accounts payable Long term abilities 1,590 520 1.315 445 1.280 265 2.600 3,220 3.235 2.610 2.925 2.485 Stockholders' Equity Common stock Retained earnings Total Liab. & Equity 815 1,350 4,275 815 1.290 3.865 815 1,085 3,445 1,290 4.200 11,400 1.290 3.480 10.595 1,290 2,585 9,285 For a horizontal analysis for Smith, what is the percent change in the cost of goods sold for year 2? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What are the days in inventory ratio for Smith for year 3? Round your final answer to one decimal place. What is the current ratio for Rogers for year 1? What is the average collection period for Rogers for year 2? Round your final answer to one decimal place. Round your final answer to two decimal places. What is the debt to assets ratio for Smith for year 3? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What is the times' interest earned ratio for Rogers for year 2? Round your final answer to one decimal place. What is the gross profit rate for Smith for year 1? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What is the net profit margin ratio for Rogers for year 3? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). What is the return on assets ratio for Smith for year 3? Convert your final answer to a percentage, round to one decimal place, and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6). Which company would you rather invest in? Briefly explain

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