Using the financial information in the following tables, compute the required ratios list on the ratio analysis sheet and then complete the horizontal and vertical analyses worksheets.

Income Statement

Ratio Analysis

Income statementblank

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ABC COMPANY INCOME STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2012 2012 2010 S1,158,417 500,702 $657.715 2011 Sales Cost of goods sold Gross profit EXPENSES S1572,134 S1,413,581 5601 215 556,721 5970,919 Advertising Depreciation Bad debts Legal S555,153 21,442 20,151 17,261 91,014 148321 14315 47,121 15,912 S 430,690 S 540,229 216,092 S 324,137 35,913 $50,531 21,442 18934 10207 31,214 142,078 13,642 45312 15,643 S349,003 $507 857 $42,150 21,442 17,943 9,701 29,104 141,143 11,932 39,142 14,217 S326,774 $330,941 132,376 S198,565 23,712 Rent Repairs and maintenanoe Salaries and wages Utilities Total expenses Net income before income tax Income tax expense NET INCOME Number of shares of stock outstanding 26,786 ABC COMPANY RATIO ANALYSIS DECEMBER 31, 2012 12/31/12 IQUIDITY RATIOS: 12/31/11 Change % Change Current ratio Current assets/Current liabilities Quick ratio (Curment assets Inventory)/Current liabilities Accounts receivable turnover Sales/A verage accounts receivable Days' sales in accounts receivable 365/Acco unts receivable turnover Inventory turnover Cost of goods sold/ Average inventory PROFITABILITY/PERFORMANCE RATIOS: Profit margin Net income/Net sales Gross profit margin (%) Gross profit/Sales Earnings per share Net incomeNumber of shares of stock Sales/Total assets Sales/Total assets Sales/Working capital Sales(Current assets Current liabilities) EQUITY POSITION RATIOS Owners' equity/Total assets Current liablities/Owners' equity Total liabilities/owners equity Total stockholders' equity'Total assets Current liabilities/Total stockholders' equity Total liabilities/Total stockholders' equity