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).

Year 3 ABC, Inc. Year 2 Year 1 XYZ Corporation Year 3 Year 2 Year 1 Income Statement Revenue Cost of goods sold Selling & admin. expenses Interest expense Net Income 14,000 7,500 2,300 11,500 5,900 1,750 20 3,830 12,700 5,600 2,100 16 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 70 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 5,400 8,225 1,220 460 1,600 ,200 4,480 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 Liabilities Accounts payable Unredeemed gift cards Long term liabilities 900 1,020 2,700 750 700 490 700 345 930 420 2,300 320 2,100 1.700 350 1,750 595 2,800 Stockholders' Equity Common stock Retained earnings Total Liabilities and Equity 815 9,345 12,705 815 5,470 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