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Vertical Analysis Income statement information for Einsworth Corporation follows: Sales Cost of goods sold Gross profit $479,000 153,280 325,720 Prepare a vertical analysis of

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Vertical Analysis Income statement information for Einsworth Corporation follows: Sales Cost of goods sold Gross profit $479,000 153,280 325,720 Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number. Einsworth Corporation Vertical Analysis of the Income Statement Sales Amount Percentage $479,000 % Cost of goods sold 153,280 Gross profit $325,720 % Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $167,000 $150,000 $133,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 4% stock, $100 par 12,000 12,000 12,000 (no change during year) Retained earnings 71,380 49,330 36,000 The 20Y7 net income was $22,530, and the 20Y6 net income was $13,810. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. When required, round to one decimal place. Return on total assets Return on stockholders' equity 20Y7 % % 20Y6 % % Return on common stockholders' equity % % b. The profitability ratios indicate that the company's profitability has leverage from the use of debt. 1. Since the return on assets is the return on stockholders' equity in both years, there must be

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