1) Nabisco Company's year-end balance sheets follow. Express the balance sheets in common size percents. Round amounts to the nearest one tenth of a percent. Analyze and comment on the results. At December 31 2015 2014 2013 Assets Cash $36.229 $ 42,780 $ 44,562 Accounts receivable, net 106,073 76,377 57,087 _Merchandise inventory 137,408 99,929 62,038 Prepaid expenses 11,548 11,003 Plant assets, net 335,317 311.062 272,710 Total assets $626,575 $540,151 $441,300 _Liabilities and Equity Accounts payable $157,577 $ 94,024 $ 57,087 Long-term notes payable secured by mortgages on plant assets 116,618 127.962 99.478 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 188,880 154,665 121,235 Total liabilities and equity 5626,575 $540,151 $441,300 2009% 2008% 7.9 14.1 18.3 2.0 57.6 100% 10.1 12.9 14.1 1.1 100% 2010% Assets Cash 5.8 Accounts receivable, net 16.9 Merchandise inventory 21.9 Prepaid expenses Plant assets, net 53.5 Total assets 100% Liabilities and Equity Accounts payable 25.1 Long-term notes payable 18.6 secured Common stock, $10 par 26.1 value Retained earnings 30.1 Total Liabilities and equity 100% 17.4% 23.7 12.9 22.5 30.3 37.0 27.5 100% 100% 1.cash as a percent has declined 2.Accounts receivable has increased as a percent of assets 3. Accounts payable have increased as percent of assets 2015 2014 $ 685,000 $ 557,000 $ At December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share $ 417,850 207,282 8,175 12,900 356,265 141,971 8,960 12,450 646,207 $ 38,793 $ 2.37 519,646 $ 37,354 $ 2.28 4) Refer to the Nabisco Company information in exercises above. Compare the company's long-term risk and capital structure positions at the end of 2010 and 2009 by computing these ratios: (1) debt and equity ratios, (2) debt-to-equity ratio, and (3) times interest earned. Comment on these ratio results. Refer to the Nabisco Company information in exercises above. Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014: (1) profit margin ratio, (2) total asset turnover, and (3) return on total assets. Comment on these ratio results
