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SECTION C (24 marks) Attempt any TWO question from the following Ques CIGiven below is the comparative statement for Dean and Gerald who happen to
SECTION C (24 marks) Attempt any TWO question from the following Ques CIGiven below is the comparative statement for Dean and Gerald who happen to be a competitor. Dean Company Gerald Company 2016 2015 2016 2015 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock 350,000 1,200,000 648,000 266,000 10,000 175,000 72,000 5,000 22,000 130,000 $100,000 400,000 60,000 50,000 54,000 270,000 58,000 72,000 200,000 700,000 $650,000 1,000,000 750,000 250,000 275,000 200,000150,000 950,000 700,000 340,000 Retained earnings80,000 40,000 3000 275,000 Instruction: (4 marks) i. Prepare vertical analysis of the 2016 ii. Compute the return of assets for both the companies and comment on the relative (4 marks) profitability of the company
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