The 2011 and 2012 financial statements of Ken's Sportswear follow:

a. Compute all relevant ratios for 2012.b. Prepare common-size financial statements.c. Evaluate the company's financial performance andconditions.

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Balance Sheet 2012 2011 Assets S 7,000 9,000 15,000 50,000 S81,000 S 9,000 12,000 18,000 60,000 $99,000 Cash Accounts receivable Inventory Long-lived assets (net) Total assets Liabilities and Shareholders' Equity Accounts payable Long-term liabilities Common stock S16,500 46,000 S12,000 40,000 20,000 20,000 Additional paid-in capital Retained earnings Total liabilities and equity 5,000 11,500 S99,000 5,000 4.000 581,000 Income Statement 2012 2011 Sales (all on credit) Less: Cost of goods sold Gross profit Operating expenses Net income from operations Interest expense Net income before taxes S72,000 30,000 $42,000 12.000 S30,000 5,000 S25,000 8.500 S16,500 5 9,000 36 Income taxes Net income Dividends Per-share market price Outstanding common shares 30 2,000 2,000