Answer the first $12$ questions

$$ What is the current ratio for Otis for year $1?$

Round your final answer to two decimal places.

$$ What is days in inventory ratio for Alma for year $3?$ Round your final answer to one decimal place.

$$ for a horizontal analysis for Alma, what is the percent change in cost of goods sold for year $2?$ Convert your final answer to a percentage, round to one decimal place and enter without the $"\%"$ sign $($e$.$g$.$ a final answer of $0\mathrm{.}105678$ would be entered as $10.$

$$

What is the average collection period for Otis$],[$for year $2?$ Round your final answer to one$],[$decimal place.$]]$

$$

What is the debt to assets ratio for Alma for year $3?$ Convert your final answer to a percentage, round to one decimal place and enter without the $"\%"$ sign $($e$.$g$.$ a final answer of $0\mathrm{.}105678$ would be entered as $10\mathrm{.}6).$

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What is the times interest earned ratio for Otis for year $2?$ Round your final answer to one decimal place$\mathrm{.}6).$

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what is the gross profit rate for alma for year $1$

$?$ Convert your tinal answer to a percentage, round to one decimal place and enter without the $"\%"$ sign $($e$.$g$.$ a final answer of $0\mathrm{.}105678$ would be entered as $10\mathrm{.}6).$

$$

What is the net profit margin ratio for Otis for year $3?$ Convert your final answer to a percentage, round to one decimal place and enter without the $"\%"$ sign $($e$.$g$.$ a final answer of $0\mathrm{.}105678$ would be entered as $10\mathrm{.}6).$

$$

What is the return on assets ratio for Alma for year $3?$ Convert your final answer to a percentage, round to one decimal place and enter without the $"\%"$ sign $($e$.$g$.$ a final answer of $0\mathrm{.}105678$ would be entered as $10\mathrm{.}6).$

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Which company would you rather invest in$?$ Briefly explain.

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If Alma borrowed $$1,500$ on a long$-$term loan in year $3,$ how would that transaction impact the times interest earned ratio?

improve

$$ worsen

$$ no impact

h

$$ Which company would you rather extend

$$a long$-$term loan to$?$ Briefly explain. $q,$

$$

$$

Once you have completed the assignment below, you must submit your answers using the answer sheet provided in Canvas; not all answers will be turned in and not all answers will be graded. Once submitted, your answers cannot be changed, but whl credit will be given. For future reference, you should keep a copy of your answers $($outside of Canvas$)$ as they will not be available to view given the nature of the grading process.

The Alma Company and the Otis Corporation each reported the following:

$\backslash$table$[[,$Alma,Otis$],[,$Year $3,$Year $2,$Year $1,$Year $3,$Year $2,$Year $1],[$Income Statement$],[$Revenue$,11,660,10,740,9,780,14,200,15,600,16,200],[$Cost of goods sold,$8,840,8,100,6,940,10,850,11,750,12,300],[$Selling & admin. expenses,$2,570,2,540,2,600,2,400,2,600,2,550],[$Tax expense,$15,10,20,70,60,75],[$Interest expense,$75,30,15,220,450,400],[$Net Income,$160,60,205,660,740,875]]$

$\backslash$table$[[$Balance Sheet$],[$Assets$],[$Cash$,980,965,970,3,730,3,345,2,815],[$Accounts receivable,$305,230,350,500,375,450],[$Inventory$,1,690,1,480,1,210,2,890,3,155,2,400],[$Property & equipment $($net$),1,300,1,150,915,4,280,3,720,3,620],[$Total Assets,$4,275,3,825,3,445,11,400,10,595,9,285],[$Liabilities$],[$Accounts payable,$1,590,1,275,1,280,2,690,3,235,2,925],[$Long term liabilities,$520,445,265,3,220,2,610,2,485],[$Stockholders$\text{'}$ Equity$],[$Common stock,$815,815,815,1,290,1,290,1,290],[$Retained earnings,$1,350,1,290,1,085,4,200,3,460,2,585],[$Total Liab. & Equity,$4,275,3,825,3,445,11,400,10,595,9,285]]$

Required:

A$.$ Prepare a horizontal analysis on revenue, cost of goods sold and net income and assess the results.

B$.$ Calculate all of the ratios presented in class for each company and assess the relative results. Round and state each ratio as presented in class.

C$.$ Based on your results in requirement B$,$ which company would you rather sell inventory to $($if sold on account$),$ make a long$-$term loan to and$/$or invest in$?$ Briefly explain why for each.

D$.$ If Alma borrowed $$1,500$ on a long$-$term loan in year $3,$ how would that transaction impact ea