i need answer for the following questions
Stark Supplies Inc. Income Statement For the Year Ended December 31 2021 2020 Sales Revenue $880,000 $744,300 Less Cost of Goods Sold 352,000 $372.150 Gross Profit 528,000 372,150 Operating Expenses Operating Expenses $397,000 $254,000 Interest Expense $21,000 $24,000 Depreciation Expense 16,000 $18,000 Total Operating Expenses $34,000 296,000 Income from Operations 94,000 76,150 Income Tax Expense 26,320 21,322 Net Income 67,680 54,828 Stark Supplies Inc. Comparative Balance Sheet As at December 31 2021 2020 Asset Current Assets Cash $266,000 $245,000 Accounts Receivable 180,000 105,420 Prepaid Insurance 45,000 52,000 Inventory 86,000 93,000 Total Current Assets $577,000 $495,420 Non-Current Assets Property, Plant & Equipment 460,000 460,000 Accumulated Depreciation (210,000) -194,000 Total Non-Current Assets 250,000 266,000 Total Assets $827,000 $761,420 Liabilities Current Liabilities Accounts Payable 81,700 74,600 Unearned Revenue $9,000 38,200 Total Current Liabilities $120,700 $112,800 Non-Current Liabilities Bank Loan 80,000 95,000 Total Non-Current Liabilities 30,000 5,000 Total Liabilities 200,700 207,800 Shareholders' Equity Common Shares 40,000 35,000 Retained Earnings 186,300 418,620 Total Shareholders' Equity 621,300 553,620 Liabilities & Shareholders' Equity $822,000 $761,420 Using the income statement and balance sheet from Holister Electric and Stark Supplies, calculate the appropriate ratios to determine which company is doing better in the categories listed below. Round all ratios to 2 decimal places. Write your explanations in the text a) profitability for 2021 (gross profit margin, net profit margin, ROE, ROA, asset turnover) 11 Mar b) liquidity for 2021 (current ratio, quick ratio, debt-to-equity) 7 MarlComparative Balance Sheet As at December 31 2021 2020 Assets Current Assets Cash $266,000 $245,000 Accounts Receivable 80,000 105,420 Prepaid Insurance 45,000 52,000 Inventory 86,000 93,000 Total Current Assets $577,000 $495,420 Non-Current Assets Property, Plant & Equipment 460,000 460,000 Accumulated Depreciation 210,000) 194,000 Total Non-Current Assets 250,000 66,000 Total Assets $827,000 $761,420 Liabilities Current Liabilities Accounts Payable 81,700 74,600 Unearned Revenue $9,000 38,200 Total Current Liabilities $120,700 $112,800 Non-Current Liabilities Bank Loan 80,000 95,000 Total Non-Current Liabilities 30,000 95,000 Total Liabilities 200,700 207,800 Shareholders' Equity Common Shares 140,000 135,000 Retained Earnings 486,300 418,620 Total Shareholders' Equity 621,300 553,620 Liabilities & Shareholders' Equity $822,000 $761,420 Using the income statement and balance sheet from Holister Electric and Stark Supplies, calculate the appropriate ratios to determine which company is doing better in the categories listed below. Round all ratios to 2 decimal places. Write your explanations in the textb a) profitability for 2021 (gross profit margin, net profit margin, ROE, ROA, asset turnover) 11 Mar b) liquidity for 2021 (current ratio, quick ratio, debt-to-equity) 7 Marl c) management performance (DSO, A/R turnover, inventory days on hand, inventory turnover) 9 Mar d) Analyze and compare the performance of the two companies using at least two ratios from each category. (The analysis is not exped to exceed 250 words)
