Exercises Use the comparative income statement and the comparative balance sheet for ACRH, Inc., to solve Exercises 23.1 through 23.12. Exercise 23.1 Objective 23-1 Exercise 23.2 Objective 23-1 Exercise 23.3 Objective 23-2 Exercise 23.4 Objective 23-2 Exercise 23.5 Objective 23-1 Exercise 23.6 Objective 23-1 Exercise 23.7 Objective 23-1 Exercise 23.8 Objective 23-1 - Vertical analysis of income statement. Using the comparative income statement, prepare a vertical analysis of all items from sales through gross profit on sales for the years shown. - Vertical analysis of balance sheet. Prepare a vertical analysis of all asset items on the comparative balance sheet for these years. - Horizontal analysis of income statement. Using the comparative income statement, prepare a horizontal analysis of all items on the income statement for years displayed. - Horizontal analysis of balance sheet. Prepare a horizontal analysis of all items on the comparative balance sheet for the years shown. Rate of return on sales. Calculate the rate of net income on sales for these two years. Rate of return on stockholders' equity. Compute the rate of net income on stockholders' equity for 2022 and 2021. Retained earnings on January 1,2021 , was $69,160. Rate of return on assets. Compute the rate of net income before income taxes on total assets for each of these two years. Base your calculation on total ending assets each year. Earnings per share. Calculate the earnings per share of common stock for each year. Price-earnings ratio. Calculate the price-earnings ratio for the two years displayed. The common stock selling price at year-end 2022 was $2.00 and for 2021 was $1.60. Current ratio. Calculate the current ratio for each year. Inventory turnover. Using the data for the two years, calculate the inventory turnover for each year. The beginning inventory for year 2021 was $59,000. Accounts receivable turnover. Compute the accounts receivable turnover on December 31, 2022, for ACRH, Inc. Assume that all sales were credit sales. Exercises Use the comparative income statement and the comparative balance sheet for ACRH, Inc., to solve Exercises 23.1 through 23.12. Exercise 23.1 Objective 23-1 Exercise 23.2 Objective 23-1 Exercise 23.3 Objective 23-2 Exercise 23.4 Objective 23-2 Exercise 23.5 Objective 23-1 Exercise 23.6 Objective 23-1 Exercise 23.7 Objective 23-1 Exercise 23.8 Objective 23-1 - Vertical analysis of income statement. Using the comparative income statement, prepare a vertical analysis of all items from sales through gross profit on sales for the years shown. - Vertical analysis of balance sheet. Prepare a vertical analysis of all asset items on the comparative balance sheet for these years. - Horizontal analysis of income statement. Using the comparative income statement, prepare a horizontal analysis of all items on the income statement for years displayed. - Horizontal analysis of balance sheet. Prepare a horizontal analysis of all items on the comparative balance sheet for the years shown. Rate of return on sales. Calculate the rate of net income on sales for these two years. Rate of return on stockholders' equity. Compute the rate of net income on stockholders' equity for 2022 and 2021. Retained earnings on January 1,2021 , was $69,160. Rate of return on assets. Compute the rate of net income before income taxes on total assets for each of these two years. Base your calculation on total ending assets each year. Earnings per share. Calculate the earnings per share of common stock for each year. Price-earnings ratio. Calculate the price-earnings ratio for the two years displayed. The common stock selling price at year-end 2022 was $2.00 and for 2021 was $1.60. Current ratio. Calculate the current ratio for each year. Inventory turnover. Using the data for the two years, calculate the inventory turnover for each year. The beginning inventory for year 2021 was $59,000. Accounts receivable turnover. Compute the accounts receivable turnover on December 31, 2022, for ACRH, Inc. Assume that all sales were credit sales