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solve this que fast plzz The table below contains information about two major competitors in the shoe industry, POOMA & ADI-DUH. Net sales Cost of
solve this que fast plzz
The table below contains information about two major competitors in the shoe industry, POOMA & ADI-DUH. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Cash Other current assets Long-term assets (net) Current liabilities Long-term liabilities Share capital Retained earnings 2021 $158,000 $87,100 $23,000 $1,800 $7,800 $25,000 $132,000 $214,000 $12,500 $124,000 $23,000 $81,000 POOMA 2020 $21,000 $107,000 $150,600 $56,000 $113,000 $12,500 $65,300 ADI-DUH 2021 $70,500 $16,000 $12,300 $1,020 $2,300 $12,500 $13,000 $27,000 $1,500 $5,300 $10,500 $13,200 2020 $10.500 $8,000 $32,600 $4,000 $12,400 $9,800 $10,200 Time left 1:59:20 REQUIRED: Part A) Complete a common-size analysis for the 2021 statement of income for both POOMA & ADI-DUH. Include a gross profit and net income figures in your analysis (8 marks). (HINT: you must first complete a multi-step income statement including revenues & expenditure items, a gross profit and net income figure in your answer) Part B) Calculate the return on assets (ROA) and the return on shareholder's equity (ROE) for both POOMA & ADI-DUH for year 2021. Show your work, including the formula and the numbers you use in your calculations, Round your answer to two decimal points. (6 marks) Part C) Comment on the performance of these two companies using the ratios you calculated above. Which company is performing better financially and why do you think that? Make sure your answer has a valid explanation based on your previous calculations. (4 marks) Part D) BONUS MARKS: Discuss two limitations of ratio analysis, (2 marks) Step by Step Solution
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