The comparative financials of Stargel Inc is as follows. At December 31, 2015, Stargel inventory was $200 and the total equity was $165. Stargel Inc. Comparative Balance Sheet December 31, 2017 and 2016 2017 2016 Assets Cash............................................................................ 400 300 Accounts Receivable................................................. 290 350 Inventory.................................................................... 150 220 Total Assets..................................................... 840 870 Liabilities Accounts Payable...................................................... 140 75 Loan Payable.............................................................. 450 600 Total Liabilities................................................ 590 375 Stockholders Equity Common Stock.......................................................... 40 40 Retained Earnings..................................................... 210 155 Total Stockholders Equity................................ 250 195 Total Liabilities and Stockholders Equity........... 840 870 Stargel Inc. Comparative Income Statement For the Years ending December 31, 2017 and 2016 2017 2016 Sales Revenue............................................................ 1,200 1,000 Less Cost of Goods Sold............................................ 800 600 Gross Profit................................................................ 400 400 Insurance Expenses................................................... 200 190 Interest Expense........................................................ 60 80 Net Income................................................................ 140 130

Instructions:

a. Prepare a horizontal analysis of Stargels financial statements indicating the increase and decrease.

b. Prepare a vertical analysis of Stargels financial statements.

c. Determine the inventory turnover for both years

d. Determine the rate of return on stockholders equity ratio for both years