Below are financial statement data for Wong Shek Company for the years 2011 and 2012.

Required:
1. Prepare common-size financial statements for Wong Shek for 2011 and 2012.
2. Did Wong Shek do better or worse in 2012 compared with 2011? Explain youranswer.

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Wong Shek Company Financial Statements For 2011 and 2012 $ 10 Cash 14 Receivables Inventory. Property, plant, and equipment 35 27 230 153 221 190 $ 500 $380 Total assets $ 106 $ 74 Accounts payable. Long-term debt Total liabilities 217 217 $ 323 $ 113 $ 291 $ 50 Paid-in capital. Retained earnings. 64 39 $ 380 $ 700 $ 500 $1,000 Total liabilities and equity Sales. Cost of goods sold. Gross profit Operating expenses Operating profit Interest expense. (700) $ 300 (240) $ 60 S(500) $ 200 (160) $ 40 (22) S 18 (22) Income before taxes. 38 Income tax expense (13) (6) $ 25 $ 12 Net income %24