1. For a horizontal analysis, what is the percent change in revenues for year 2 for XYZ? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).

2. For a horizontal analysis, what is the percent change in net income for year 3 for ABC? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).

3. Based on your horizontal analysis in Part 1, which company had better overall results?

A. ABC

B. XYZ

4. What is the XYZs current ratio for Year 2? Round your final answer to two decimal places.

5. What is the ABC's days sales in accounts receivable ratio for Year 3? Round your final answer to one decimal place.

6. What is the XYZ's days sales in inventory ratio for Year 2? Round your final answer to one decimal place.

7. What is the ABC's debt ratio for Year 3? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).

8. What is the XYZ's gross profit ratio for Year 2? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).

9, What is the ABC's net profit (i.e. net income) ratio for Year 3? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).

10. What is XYZ's return on investment ratio for Year 2? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).

11. Based on your results in Part 2, which company should you choose to sell goods to on account?

A. ABC

B. XYZ

2. Based on your results in Part 2, which company should you choose to make a long-term loan to?

A. ABC

B. XYZ

13. Based on your results in Part 2, which company should you choose to invest in?

A. ABC

B. XYZ

14. If XYZ purchased $1,500 of equipment on account in year 3, how would that transaction impact its current ratio? Enter the resulting ratio calculation below and round your final answer to two decimal places.

15. If ABC purchased $1,500 of equipment on account in year 3, how would that transaction impact its debt ratio? Enter the resulting ratio calculation below and convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).

16. If XYZ purchased $1,500 of equipment on account in year 3, how would that transaction impact its return on investment ratio? Enter the resulting ratio calculation below and convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).