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P12-2 Analyzing Comparative Financial Statements by Using Percentages and Selected Ratios L012-5, 126,129 The comparative financial statements prepared at December 31, year 2, for Goldfish

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P12-2 Analyzing Comparative Financial Statements by Using Percentages and Selected Ratios L012-5, 126,129 The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following summarized data: 'One-third was credit sales. tDuring Year 2, cash dividends amounting to $7,200 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.) 'One-third was credit sales. tDuring Year 2, cash dividends amounting to $7,200 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 neares whole percent. Percentages may not add exactly due to rounding.) Compute the following for year 2 : 2-a. Percentage markup on sales. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) Compute the following for year 2: 2-a. Percentage markup on sales. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) 2-b. Income tax rate. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) 2-c. Net profit margin ratio. Was it a good or poor indicator of performance? (Round percentage answer to 2 decimal places 0.1243 should be entered as 12.43).) 2-d. Percentage of total resources invested in property, plant, and equipment. (Round percentage answer to 2 decimal places 0.1243 should be entered as 12.43 ).) 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) 2.f. Return on assets. Assume that long-term debt increased to $35,310 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).) 2-g. Return on equity. (Round percentage answer to 2 decimal places (L.e., 0.1243 should be entered as 12.43).) 2-h. Financial leverage percentage. Did borrowing from creditors benefit shareholders? (Round intermediate calculations and final answer to 2 decimal places.)

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