Garfinkle Inc.’s comparative financial statements for the years ending December 31, 20-2 and 20-1, are shown below.

REQUIRED 1. Prepare a horizontal analysis of Garfinkle’s comparative income statement for 20-2 and 20-1.
Prepare a vertical analysis of Garfinkle’s comparative income statement for 20-2 and 20-1.
Prepare a horizontal analysis of Garfinkle’s comparative balance sheet for 20-2 and 20-1.
Prepare a vertical analysis of Garfinkle’s comparative balance sheet for 20-2 and 20-1.
Determine the following measures for 20-2 (round all calculations to two decimal places):

a) working capital

b) current ratio

c) quick ratio

d) accounts receivable turnover

e) average collection period for accounts receivable

f) merchandise inventory turnover g) average number of days required to sell merchandise inventory h) ratio of net sales to assets i) return on total assets j) return on common stockholders’ equity k) earnings per share of common stock l) book value per share of common stock m) ratio of liabilities to stockholders’ equity n) times interest earned ratio

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Garfinkle Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 Sales (all on account) Sales returns and allowances Net sales Cost of goods sold Gross profit Administrative expenses Selling expenses Total operating expenses Operating income Other expense (interest) Income before income taxes Income tax expense Net income 20-2 20-1 $10,250,000 $6,515,200 250,000 115,200 $6,400,000 4,160,000 $10,000,000 6,800,000 $ 3,200,000 $ 650,000 1,300,000 $ 1,950,000 $ 1,250,000 160,000 $ 1,090,000 390,000 $ 700,000 $2,240,000 $ 448,000 928,000 $1,376,000 $ 864,000 89,600 $ 774,400 234,400 $ 540,000