P12-2 Analyzing Comparative Financial Statements by Using Percentages and Selected Ratios L012-5, 12-6, 12-9 The comparative financial statements prepared at December 31, year 2. for Goldfish Company showed the following summarized data: Year 2 Year 1 Statement of Earnings Sales revenue $206,820 $175,000 Cost of sales 143,360 120,000 Gross margin 63,460 55,000 Operating expenses and interest expense 49, 710 44,000 Earnings before income taxes 13,750 11,000 Income tax expense 3,360 2,500 Net earnings $ 10, 390 $ 8,500 Statement of Financial Position Cash $ 3,500 $ 7,000 Accounts receivable (net) 16,250 19,500 Inventory 41,140 36,000 Property, plant, and equipment (net) 47, 360 40,000 $ 108,250 $102,500 Current liabilities (no interest) $ 15,260 $ 18,000 Non-current liabilities (18% interest) 51,100 45,000 Common shares (6,000 shares) 24,000 24,000 Retained earningst 17,890 15,500 $108,250 $102,500 *One-third was credit sales. During Year 2, cash dividends amounting to $8,000 were declared and paid. 2-d. Percentage of total resources invested in property, plant, and equipment. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Percentage % 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) Debt-to-equity ratio 2-f. Return on assets. Assume that long-term debt increased to $51,100 in month 1 of year 2. (Round Intermediate calculations to 3 decimal places and percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Return on assets % 2-9. Return on equity. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Return on equity % 2 h. Financial leverage percentage. Did borrowing from creditors benefit shareholders? (Round intermediate calculations and final answer to 2 decimal places.) Financial leverage percentage %