Below are financial statement data for Wong Shek Company for the years 2011 and 2012.

Required:
1. Prepare common-size financial statements for Wong Shek for 2011 and 2012.
2. Did Wong Shek do better or worse in 2012 compared with 2011? Explain youranswer.

Wong Shek Company Financial Statements For 2011 and 2012 $ 10 Cash 14 Receivables Inventory. Property, plant, and equipment 35 27 230 153 221 190 $ 500 $380 Total assets $ 106 $ 74 Accounts payable. Long-term debt Total liabilities 217 217 $ 323 $ 113 $ 291 $ 50 Paid-in capital. Retained earnings. 64 39 $ 380 $ 700 $ 500 $1,000 Total liabilities and equity Sales. Cost of goods sold. Gross profit Operating expenses Operating profit Interest expense. (700) $ 300 (240) $ 60 S(500) $ 200 (160) $ 40 (22) S 18 (22) Income before taxes. 38 Income tax expense (13) (6) $ 25 $ 12 Net income %24