1. Use the comparative income statements and balance sheets below to complete the required ratio analysis.

   Comparative Income Statement For the Years Ended December 31, 20-C and 20-B
   	20-C		20-B
   Net sales		$965,400		$1,028,600
   Cost of goods sold		515,100		590,300
   Gross profit		$450,300		$438,300
   Operating expenses
   Selling expenses		$136,000		$169,100
   Administrative expenses		150,200		182,400
   Interest expenses		26,000		32,500
   Total operating expenses		$312,200		$384,000
   Income tax expenses		45,500		18,200
   Total expenses		$357,700		$402,200
   Net income		$92,600		$36,100

   Comparative Balance Sheet December 31, 20-C and 20-B
   Assets	20-C		20-B
   Cash		$38,100		$43,500
   Accounts receivable (net)		59,800		101,500
   Merchandise inventory		150,900		171,600
   Property, plant, and equipment		710,500		808,800
   Total assets		$959,300		$1,125,400
   Liabilities and Stockholders' Equity
   Notes payable (due June 30, 20-D)		$70,000		$70,000
   Accounts payable		101,200		146,600
   Bonds payable		154,000		280,000
   Common stock, $10 par value		420,000		420,000
   Retained earnings		214,100		208,800
   Total liabilities and stockholders' equity		$959,300		$1,125,400

   Additional information:

   All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $139,200; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding 42,000.

   	20-C		20-B
   Number of common shares		42,000		42,000
   Dividends paid		$44,400		$49,000

   Required:

   Prepare a profitability analysis by calculating for 20-B and 20-C the (a) net sales to assets, (b) return on total assets, (c) return on common stockholders' equity, (d) earnings per share, and (e) book value per share. Indicate whether there has been an improvement or not from 20-B to 20-C. Round to two decimal places.

   	20-C		20-B		Improvement?
   a. Net sales to assets	fill in the blank 1	to 1	fill in the blank 2	to 1
   b. Return on total assets	fill in the blank 4	%	fill in the blank 5	%
   c. Return on common stockholders' equity	fill in the blank 7	%	fill in the blank 8	%
   d. Earnings per share	$fill in the blank 10	per share	$fill in the blank 11	per share
   e. Book value per share	$fill in the blank 13	per share	$fill in the blank 14	per share