pdf s O 1/4 80% + Read carefully the following financial information before planning to write the Report Below is the summary information from the financial statements of two companies competing in the same industry: Income Statement for the year ended 31 December 2021 Alpha Company Beta Company $'000 $'000 Sales 393,600 667,500 Cost of goods sold 290,600 480.000 Gross profit 103,000 187,500 Operating expenses 57,550 101,200 Interest expense 5.900 12.300 Net profit before tax 39,550 74,000 Income tax expense 5,700 12,300 Net profit after tax 33.850 61.700 Basic earnings per share $1.27 $2.19 Page 1 of 4 2/4 80% Balance Sheet as at 31 December 2021 Alpha Company Beta Company Assets S'000 $'000 Cash 20,000 36,500 Accounts receivable 77,100 70,500 Current notes receivable (trade) 11,600 9,000 Merchandise inventory 86,800 82,000 Prepaid expenses 9,700 10,100 Property, plant and equipment 176.900 252.300 Total Assets 382.100 460.400 Liabilities and Equity Current liabilities Long-term notes payable Share capital Retained earnings Total Liabilities and Equity 90,500 97,000 93,000 93,300 133,000 141,000 65.600 129.100 382.100 460.400 Beginning-of-year balances (1 January 2021) Accounts receivable Current notes receivable (trade) Merchandise inventory Total assets Share capital Retained earnings 72.200 73,300 0 0 105,100 80,500 383,400 1 443,000 133,000 141,000 49,100 109,700 22C 2/4 80% Additional information: Alpha Company Beta Company Dividend paid $1.50 per share $1.80 per share Current market price $25 per share $30 per share Assignment Tasks Page 2 of 41 learning Leading fre (1) Perform a vertical (common-size) analysis of the income statements and balance sheets for both companies. (2) Calculate and compare the following financial ratios/amounts for both companies