Questions

Following are Cranston's common$-$size income statements and balance sheets for $2013$ and $2012.$ Prepare a common$-$size income

statement and balance sheet for $2014.$

Complete the $2014$ table of financial ratios for Cranston.

Use the common$-$size statements and the ratio analysis that you have prepared to comment on Cranston's:

a$.$ liquidity.

b$.$ solvency.

c$.$ asset management.

d$.$ profitability.

e$.$ market performance.

Indicate whether the ratios are improving or deteriorating over the three$-$year period and whether they are better or worse than the $2014$

industry averages.

Express Cranston's ROE in terms of the DuPont identity. Which ratios are contributing to Cranston's below$-$average ROE?

Based on your analyses in Questions $1$ through $4,$ why do you think Cranston's recent stock performance has been disappointing?

Following are Cranston's common$-$size income statements and balance sheets for $2013$ and $2012.$ Prepare a common$-$size income

statement and balance sheet for $2014.$

Complete the $2014$ common$-$size income statement below: $($Round to two decimal places.$)$

Income Statements

Complete the $2014$ common$-$size balance sheet below: $($Round to two decimal places.$)$