Using the information from the posted photo, or the data given in P13-5 for Prince Company:

REQUIRED:

1. Compute component percentages for Year 2.

2. Compute the ratios in the DuPont model for Year 2.

Computing Differences and Comparing Financial Statements Using Perce The comparative financial statements for Prince Company are below: Year 2 Year 1 Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income $190,000 112.000 78,000 56,000 22,000 8,000 $167.000 100,000 67,000 53,000 14,000 4.000 S 10,000 S 14,000 Year 2 Year 1 Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets S 4,000 14.000 40,000 45,000 103,000 S 7,000 18,000 34,000 38,000 $97,000 Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock (S5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity S 16,000 45,000 30,000 12.000 S103,000 $17,000 45,000 30,000 5,000 $97,000 Required l. Complete the following columns for each item in the preceding comparative financial statements: INCREASE (DECREASE) from Year 1 to Year 2 Amount Percent 2. By what amount did the current ratio change from Year I to YearPIC COLLAGE