Use the following financial statements of Precision Co. to complete these requirements.
1. Prepare comparative income statements showing the percent increase or decrease for the current year in comparison to the prior year.
2. Prepare common-size comparative balance sheets for both years.

3. Compute the following ratios for the current year and identify each one's building block category for financial statement analysis.
a. Current ratio
b. Acid-test ratio
c. Accounts receivable turnover
d. Days' sales uncollected
e. Inventory turnover
f. Debt ratio
g. Debt-to-equity ratio
h. Times interest earned
i. Profit margin ratio
j. Total asset turnover
k. Return on total assets
I. Return on equity

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PRECISION COMPANY Comparative Income Statements For Years Ended December 31 Current Yr Sales..... Cost of goods sold... Gross profit.... Operating expenses Advertising expense.. Sales salaries expense.. Office salaries expense Insurance expense.... Supplies expense.. Depreciation expense Miscellaneous expenses. Total operating expenses Operating income... Interest expense... Income before taxes. Income tax expense. Net income. Earnings per share........ Prior Yr $2,486,000 $2,075,000 1,523,000 1,222,000 963,000 853,000 145,000 240,000 165,000 200,000 100,000 26,000 85,000 17,000 778,000 185,000 44,000 141,000 100,000 280,000 47,000 $ 94,000 $ 0.99 $ 45,000 35,000 75,000 15,000 750,000 103,000 46,000 57,000 19,000 $38,000 0.40