Comparative financial statement data for Cool Brewery Company and Northern Beer Company, two competitors, follow (amounts in thousands):

Required:
a. Prepare a common size analysis for 2008 for Cool Brewery Company and Northern Beer Company.
b. Calculate the return on assets and the return on shareholders' equity for both companies. For the ROA, break it down into its two component ratios.
c. Comment on the relative profitability of these companies.
d. Identify two main reasons for the difference in their profitability.
e. Calculate the debt to equity ratio for both companies.
f. Compare the use of leverage by these companies.

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Cool Brewery Company Northern Beer Company 2009 2010 2009 2010 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Long-term assets (net) Current liabilities Long-term liabilities Share capita Retained earnings $206,700 100,500 85.400 $40,500 15,300 17,190 370 1,130 7,800 4.700 12.700S 98,00090,500 210,000 209,600 60,800 03,900117,50 48,500 73,300 29,100 3.900 8,000 17,800 12.100 $ 9,900 30,700 4,000 7,400 16,700 12,500 71.900 51,200 81.000