1. Compute the following ratios for each company (please round to 2 decimal places for these calculations): a. Rate of return on net sales b. Rate of return on total assets at year-end c. Rate of return on stockholders' equity at year-end d. Earnings per share of common stock e. Ratio of stockholders' equity to total equities f. Current ratio g. Asset turnover h. Book value per share of common stock 2. Comment on any similarities or differences in the two companies' ratios. When possible, comment on the cause for these differences. 3. From the investor's point of view, is one company more at risk than the other? 4. Would you grant a five-year loan to either company? Explain. Analyze: Assume that Suz Inc. believes that it can cut the cost of goods sold by 5 percent in 2023 wh: 2022 levels. If the company met this goal, discuss the potential implications to the rate of return on sales and earnings per share. Assume a tax rate of 25 percent. a Rate of return on net sale Total Profit/Net sale Revenuex 100 36.9565237%KokoInc. 48.57143499%SuzInc. Ratio b Rate of return ion tital assests at year end Net Sale/ Avarage Total Assets 2.486486 2.5 Koko Inc. 2.1813652.2SuzInc. Ratio 3:2 c Rate of return on stockholder's equity at year end Total Assets- Total Liabilities 151500KokoInc.$151,500 231100SuzInc.$231,100 d Earning per share of common stock Net Income/Common Stock 4.666667 4.7 Koko Inc. 6.833333 6.8 Suz Inc. Ratio 5:7 e Ratio of stockholder's equity to total equities Tota share holder's equity/Total asstes 0.40945941%KokoInc. 0.720162 72% Suz Inc. f. Current Ratio Total assets/Total liabilities 1.693364 1.7 Koko Inc. 3.573497 3.6 Suz, Inc. Ratio 2:3 g Asset Turn Over Net sale/average of total assets 4.972973 4.97 Koko Inc. 4.36273 4.4 Suz, Inc. Ratio 5:4 h Book value per share of commom stock 0 because there is no Outstanding Shares 1. Compute the following ratios for each company (please round to 2 decimal places for these calculations): a. Rate of return on net sales b. Rate of return on total assets at year-end c. Rate of return on stockholders' equity at year-end d. Earnings per share of common stock e. Ratio of stockholders' equity to total equities f. Current ratio g. Asset turnover h. Book value per share of common stock 2. Comment on any similarities or differences in the two companies' ratios. When possible, comment on the cause for these differences. 3. From the investor's point of view, is one company more at risk than the other? 4. Would you grant a five-year loan to either company? Explain. Analyze: Assume that Suz Inc. believes that it can cut the cost of goods sold by 5 percent in 2023 wh: 2022 levels. If the company met this goal, discuss the potential implications to the rate of return on sales and earnings per share. Assume a tax rate of 25 percent. a Rate of return on net sale Total Profit/Net sale Revenuex 100 36.9565237%KokoInc. 48.57143499%SuzInc. Ratio b Rate of return ion tital assests at year end Net Sale/ Avarage Total Assets 2.486486 2.5 Koko Inc. 2.1813652.2SuzInc. Ratio 3:2 c Rate of return on stockholder's equity at year end Total Assets- Total Liabilities 151500KokoInc.$151,500 231100SuzInc.$231,100 d Earning per share of common stock Net Income/Common Stock 4.666667 4.7 Koko Inc. 6.833333 6.8 Suz Inc. Ratio 5:7 e Ratio of stockholder's equity to total equities Tota share holder's equity/Total asstes 0.40945941%KokoInc. 0.720162 72% Suz Inc. f. Current Ratio Total assets/Total liabilities 1.693364 1.7 Koko Inc. 3.573497 3.6 Suz, Inc. Ratio 2:3 g Asset Turn Over Net sale/average of total assets 4.972973 4.97 Koko Inc. 4.36273 4.4 Suz, Inc. Ratio 5:4 h Book value per share of commom stock 0 because there is no Outstanding Shares