1a. 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).

1b, 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).

1c. 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).

1d. Based on your results in Part 2, which company should you choose to sell goods to on account?

A. ABC

B. XYZ

1e. Based on your results in Part 2, which company should you choose to make a long-term loan to?

A. ABC

B. XYZ

1f. Based on your results in Part 2, which company should you choose to invest in?

A. ABC

B. XYZ

1g. 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.

1h. 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).

1i. 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).

ABC, Inc. Year 2 XYZ Corporation Year 3 Year 2 Year 1 Year 3 Year 1 Income Statement Revenue Cost of goods sold Selling & admin. expenses Interest expense Net Income 14,000 7,500 2,300 11,500 12,700 5,900 5,600 1,750 2,100 2010 3,830 4,990 18,500 9,500 2,200 200 6,600 17,000 8,700 1,950 340 6,010 16,800 9,900 2,100 350 4,450 4,130 Balance Sheet Assets Cash Accounts receivable Inventory Property & equipment (net) Total Assets 1,200 265 2,040 9,200 12,705 975 250 1,600 1,220 460 1,600 1.200 3,300 450 2,600 10,250 16,600 2,700 300 2,300 3,900 9,200 1,975 320 1,690 3,700 7,685 8,225 4,480 Liabilities Accounts payable Unredeemed gift cards Long term liabilities 900 1,020 625 750 700 490 700 930 2,700 420 2,800 2,300 320 2,100 1,700 350 1,750 345 Stockholders' Equity Common stock Retained earnings Total Liabilities and Equity 815 815 9,3455,470 12,705 8,225 815 1,690 4,480 1,290 9,390 16,600 1,290 3,190 9,200 1,290 2,595 7,685 ABC, Inc. Year 2 XYZ Corporation Year 3 Year 2 Year 1 Year 3 Year 1 Income Statement Revenue Cost of goods sold Selling & admin. expenses Interest expense Net Income 14,000 7,500 2,300 11,500 12,700 5,900 5,600 1,750 2,100 2010 3,830 4,990 18,500 9,500 2,200 200 6,600 17,000 8,700 1,950 340 6,010 16,800 9,900 2,100 350 4,450 4,130 Balance Sheet Assets Cash Accounts receivable Inventory Property & equipment (net) Total Assets 1,200 265 2,040 9,200 12,705 975 250 1,600 1,220 460 1,600 1.200 3,300 450 2,600 10,250 16,600 2,700 300 2,300 3,900 9,200 1,975 320 1,690 3,700 7,685 8,225 4,480 Liabilities Accounts payable Unredeemed gift cards Long term liabilities 900 1,020 625 750 700 490 700 930 2,700 420 2,800 2,300 320 2,100 1,700 350 1,750 345 Stockholders' Equity Common stock Retained earnings Total Liabilities and Equity 815 815 9,3455,470 12,705 8,225 815 1,690 4,480 1,290 9,390 16,600 1,290 3,190 9,200 1,290 2,595 7,685