Required a. Calculate trend percentages, using Year 1 as the base year. b. Calculate the return on sales for each year. (Rates above 2.8% are considered good for manu- facturers of pollution controls; rates above 6.5% are considered very good.) Comment on the results of your analysis. P14-5A. Changes in Various Ratios Presented below is selected information for Turner Company: C. 2019 2018 Sales revenue... Cost of goods sold Interest expense. Income tax expense Net income.... Cash flow from operating activities. Capital expenditures.. Accounts receivable (net), December 31 Inventory, December 31. Stockholders' equity, December 31 Total assets, December 31. . $950,000 575,000 20,000 27,000 65,000 70,000 45,000 126,000 196,000 450,000 750,000 $850,000 545,000 20,000 30,000 55,000 60,000 45,000 120,000 160,000 400,000 675,000 . . + + Required Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. a. 43&page/616 Auto Zoom malysis and Interpretation of Financial Statements Cambridge Business Publishers 2018 1. 2. 3. 4. 35.9% 8.3% 6.5% Gross profit percentage Return on assets Return on sales Return on common stockholders' equity (no preferred stock was outstanding). Accounts receivable turnover.. Average collection period.. Inventory turnover. ... Times-interest-earned ratio Operating-cash-flow-to-capital-expenditures ratio 5. 6. 7. 8. 9. 13.9% 8.00 45.6 days 3.61 5.25 1.33 b. Comment on the changes between the two years. 1. Ratios from Comparative and Common-Size Data Consider the following financial statements for Benjamin Company