Comparative financial statement data for Cool Brewery Company and Northern Beer Company, two competitors, follow (amounts in
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Required:
a. Prepare a common size analysis for 2008 for Cool Brewery Company and Northern Beer Company.
b. Calculate the return on assets and the return on shareholders' equity for both companies. For the ROA, break it down into its two component ratios.
c. Comment on the relative profitability of these companies.
d. Identify two main reasons for the difference in their profitability.
e. Calculate the debt to equity ratio for both companies.
f. Compare the use of leverage by these companies.
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Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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