P12-2 Analyzing Comparative Financial Statements by Using Percentages and Selected Ratios LO12-5, 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 Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) $ 309, 140* $ 260,000 241,800 202,000 67,340 58,000 46,470 41,400 20,870 16,600 9,680 7,500 $ 11,190 $ 9,100 $ 3,960 12,610 36,810 52,430 $ 105,810 $ 12,850 40,870 30,000 22,090 $ 105,810 $ 7,800 15,000 32,000 44,000 $ 98,800 $ 14,900 36,000 30,000 17,900 $ 98,800 Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst *One-third was credit sales. During Year 2, cash dividends amounting to $7,000 were declared and paid. Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Component Percentages Year 2 % % % % % % % Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity % % % % % % % % % % Compute the following for year 2: 2. Percentage markup on sales, Income tax rate, Net profit margin ratio, Percentage of total resources invested in PP&E, Debt-to-equity ratio, Return on assets (assume that long-term debt increased to $40,870 in month 1 of year 2), Return on equity, Financial leverage percentage