The following information pertains to Rocky Foundation:

Required
a. Prepare and interpret horizontal and vertical analyses of all four accounts. Round percentages to one decimal point (i.e., 23.9%).
b. Calculate and interpret the receivables turnover ratio and days-in-receivables ratio.
c. Calculate and interpret the allowance ratio for both years.

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2012 2011 Net sales Net accounts receivable Allowance for bad debts Total assets $600,000 $582,000 465,00 450,000 14,000 13,200 630,000 653,000