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Compute and interpret ratios. Below you will find the condensed financial statements for Koko Inc. and Suz Inc. for 2022. INSTRUCTIONS 1. Compute the following
Compute and interpret ratios. Below you will find the condensed financial statements for Koko Inc. and Suz Inc. for 2022. INSTRUCTIONS 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. Analyze: Assume that Suz Inc. believes that it can cut the cost of goods sold by 5 percent in 2023 while keeping net sales and operating expenses at 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
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