Company K 2020 and 2019 Financial Statements Income Statement Breakdown 12/31/2020 12/31/2019 > Total Revenue 33.014.000 37,266,000 Cost of Revenue 13.433.000 14.619.000 Gross Profit 19.581.000 22,647.000 > Operating Expense 9.757.000 12.114.000 Operating Income 9.824.000 10.538.000 > Net Non Operating interest Inc... -1.067.000 -383.000 > Other Income Expense 992.000 636.000 Pretax Income 9.749.000 10.786.000 Tax Provision 1.981.000 1.801.000 > Net Income Common Stockhold.. 7.747,000 8.920,000 Company K Balance Sheet Breakdown 12/31/2020 12/31/2019 v Tora Assets 37.296.000 56.381.000 y Current Assets 19.240.000 20.411.000 > Cash, Cash Equivalents & S... 10.914,000 11.175.000 > Receivables 3.144.000 3.971.000 > Inventory 3.266.000 3.379.000 Prepaid Assets 1916.000 1.886.000 > Total non-current assets 68.056.000 55.970.000 Total Labilities Nel Minority Int. 66,012.000 65.283.000 > Current Liabilities 14,601.000 26.973.000 > Total Non Current Liabilities... 51 411 000 38310.000 Total Equity 21 284,000 21.096,000 1. For Company P and Company k please complete the following: a. Perform Horizontal Analysis for each line item on Company P and Company K Income Statement. 30 points b. Perform Vertical Analysis for 2020 Income Statement for Company P and Company K. It is not necessary to complete Vertical Analysis for 2019. 20 points C. After completing requirements (a) and (b) please answer the following questions. 15 points i. Which company had the higher increase in total revenue from 2019 to 2020? ii. Which company had the higher increase in net income from 2019 to 2020? points. iii. Cost of Revenue (COGS) is what percentage of total revenue for Company K? iv. Cost of Revenue (COGS) is what percentage of total revenue for Company P? 2. Ratios. The following Ratios MUST BE CALCULATED for Company P and Company K for the year 2020. Please show the formula. Current Ratio. 10 points b. Inventory Turn-over. 10 points C. Gross Profit Percentage. 10 points a. d. After completing requirement a, b and c (above) please answer the following questions. i. Based on the Ratios for each company 1. Which company had the higher Gross Profit Percentage? 5 points. 2. How many days does Company P sell through their inventory? 5 points. 3. How many days does Company K sell through their inventory? 5 points. 4. Based on the answers in questions 2 and 3, which company is selling through their inventory quicker? 5 points. ii. Which company has the "best" current ratio? (Please refer to your notes) 5 points. Company K 2020 and 2019 Financial Statements Income Statement Breakdown 12/31/2020 12/31/2019 > Total Revenue 33.014.000 37,266,000 Cost of Revenue 13.433.000 14.619.000 Gross Profit 19.581.000 22,647.000 > Operating Expense 9.757.000 12.114.000 Operating Income 9.824.000 10.538.000 > Net Non Operating interest Inc... -1.067.000 -383.000 > Other Income Expense 992.000 636.000 Pretax Income 9.749.000 10.786.000 Tax Provision 1.981.000 1.801.000 > Net Income Common Stockhold.. 7.747,000 8.920,000 Company K Balance Sheet Breakdown 12/31/2020 12/31/2019 v Tora Assets 37.296.000 56.381.000 y Current Assets 19.240.000 20.411.000 > Cash, Cash Equivalents & S... 10.914,000 11.175.000 > Receivables 3.144.000 3.971.000 > Inventory 3.266.000 3.379.000 Prepaid Assets 1916.000 1.886.000 > Total non-current assets 68.056.000 55.970.000 Total Labilities Nel Minority Int. 66,012.000 65.283.000 > Current Liabilities 14,601.000 26.973.000 > Total Non Current Liabilities... 51 411 000 38310.000 Total Equity 21 284,000 21.096,000 1. For Company P and Company k please complete the following: a. Perform Horizontal Analysis for each line item on Company P and Company K Income Statement. 30 points b. Perform Vertical Analysis for 2020 Income Statement for Company P and Company K. It is not necessary to complete Vertical Analysis for 2019. 20 points C. After completing requirements (a) and (b) please answer the following questions. 15 points i. Which company had the higher increase in total revenue from 2019 to 2020? ii. Which company had the higher increase in net income from 2019 to 2020? points. iii. Cost of Revenue (COGS) is what percentage of total revenue for Company K? iv. Cost of Revenue (COGS) is what percentage of total revenue for Company P? 2. Ratios. The following Ratios MUST BE CALCULATED for Company P and Company K for the year 2020. Please show the formula. Current Ratio. 10 points b. Inventory Turn-over. 10 points C. Gross Profit Percentage. 10 points a. d. After completing requirement a, b and c (above) please answer the following questions. i. Based on the Ratios for each company 1. Which company had the higher Gross Profit Percentage? 5 points. 2. How many days does Company P sell through their inventory? 5 points. 3. How many days does Company K sell through their inventory? 5 points. 4. Based on the answers in questions 2 and 3, which company is selling through their inventory quicker? 5 points. ii. Which company has the "best" current ratio? (Please refer to your notes) 5 points