1102AFE Accounting for Decision Making Extra Practice Problems for Final Exam QUESTION 1 Lecture 5 5: Workshop 5 on Financial Statement Analysis From the following information of two intense competitors: Eastco Ltd and Westco Ltd, prepare: 1. A Vertical analysis of the Income Statement and the Balance Sheet, and 2. A Ratio analysis for comparison of liquidity, capital structure, asset efciency and protability. Round all calculations to 2 decimal places. Eastco Ltd Westco Ltd Income Statement data Net sales 55 40 000 $ 82 000 Cost of sales (32 000) [65 000] Selling and administrative expenses (7 200) [13 000] Finance expense (600) (1 000] Gain on sale of equipment 800 200 Income tax expense m (1 200! Prot $10.0 5.25310 Balance Sheet data (end-ofyear) Current assets 3; 11,000 $ 11,000 Property, plant and equipment (net) 9 000 17 481 Total assets $ 20 000 i 28 481 Current liabilities $ 5 500 $ 9 000 Noncurrent liabilities 8 200 11 000 Total equity 6 300 I3 481 Total liabilities and equity 120000 iZBAl Beginning -of-year balances Total assets $ 17 504 $ 26 441 Total equity 6 093 10 753