Frank Smythe, the owner of Cuppola Ltd., has asked you to compare the operations and financial position of his company with those of Ling Ltd., a large company in the same business and a company that Frank Smythe considers representative of the industry.

Required:
Compare the operations and financial positions of the two companies, supporting your comments with useful ratios and percentages.
Compare the operations and financial positions of the two companies, supporting your comments with useful ratios and percentages.

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Statements of Financial Position Assets Cash Accounts receivable Inventories Property, plant, and equipment Accumulated depreciation Goodwill Cuppola Limited 20X1 $ 100,000 70,000 230,000 400,000 500,000 (300,000) 200,000 $ 600,000 20X0 Ling Limited 20X1 $ 20,000 $ 100,000 60,000 800,000 190,000 2,400,000 270,000 3,300,000 500,000 5,300,000 (270,000) (2,600,000) 500,000 230,000 $ 500,000 3,200,000 $6,500,000 20X0 $ 125,000 750,000 1,825,000 2,700,000 5,000,000 (2,300,000) 500,000 3,200,000 $5,900,000