Below are the comparative Statement of Comprehensive Income and Statement of Financial Position of Elen Company...

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Below are the comparative Statement of Comprehensive Income and Statement of Financial Position of Elen Company and Melanie Company: Net Sales Cost of Goods Sold Selling Expenses General and administrative expenses Interest Expense Net Income Current Assets Accounts Receivable Inventory Prepaid Assets Equipment, net Total Assets Current Liabilities Long-Term Liabilities Owner's Capital Total Liabilities and Owner's Capital Statement of Comprehensive Income Elen Company 2014 P3,407,921.00 2,377,078,00 665,005.00 119,900.00 19,756.00 P226,182 20L3 71,715.00 350,000.00 275,430.00 20,000.00 Elen Company 20L4 Melanie Company 2014 P745,883.60 530,200.00 173,800.00 14,630.00 4,954.40 P22,299.20 Statement of Financial Position 2013 Melanie Company 2014 2013 2013 96,102.00 48,774.00 49,939.20 345,600.00 75,675.00 68,543.00 225,600.00 43,890.20 40,345.20 20,000.00 15,000.00 16,000.00 276,786.40 451,613.80 1,146,882.00 1,100,000.00 307,401.60 1,864,027.00 1,787,302.00 490,740.80 143,715.00 166,793.00 77,765.60 66,618.20 238,700.00 198,000.00 65,164.00 55,000.00 1,481,612.00 1,422,509.00 347,811.20 329,995.60 1,864,027.00 1,787,302.00 490,740.80 451,613.80 Problem 1: Compute for the profitability ratios of both Elen and Melanie. Which of the two companies do you believe is more profitable? Problem 2: Compute for operational efficiency ratios of both Elen and Melanie. Which of the two companies is more efficient? Problem 3: Compute for the financial health ratios of both Elen and Melanie. Which of the two companies is more financially healthy? Below are the comparative Statement of Comprehensive Income and Statement of Financial Position of Elen Company and Melanie Company: Net Sales Cost of Goods Sold Selling Expenses General and administrative expenses Interest Expense Net Income Current Assets Accounts Receivable Inventory Prepaid Assets Equipment, net Total Assets Current Liabilities Long-Term Liabilities Owner's Capital Total Liabilities and Owner's Capital Statement of Comprehensive Income Elen Company 2014 P3,407,921.00 2,377,078,00 665,005.00 119,900.00 19,756.00 P226,182 20L3 71,715.00 350,000.00 275,430.00 20,000.00 Elen Company 20L4 Melanie Company 2014 P745,883.60 530,200.00 173,800.00 14,630.00 4,954.40 P22,299.20 Statement of Financial Position 2013 Melanie Company 2014 2013 2013 96,102.00 48,774.00 49,939.20 345,600.00 75,675.00 68,543.00 225,600.00 43,890.20 40,345.20 20,000.00 15,000.00 16,000.00 276,786.40 451,613.80 1,146,882.00 1,100,000.00 307,401.60 1,864,027.00 1,787,302.00 490,740.80 143,715.00 166,793.00 77,765.60 66,618.20 238,700.00 198,000.00 65,164.00 55,000.00 1,481,612.00 1,422,509.00 347,811.20 329,995.60 1,864,027.00 1,787,302.00 490,740.80 451,613.80 Problem 1: Compute for the profitability ratios of both Elen and Melanie. Which of the two companies do you believe is more profitable? Problem 2: Compute for operational efficiency ratios of both Elen and Melanie. Which of the two companies is more efficient? Problem 3: Compute for the financial health ratios of both Elen and Melanie. Which of the two companies is more financially healthy?

Answer rating: 100% (QA)

To compute the profitability ratios operational efficiency ratios and financial health ratios for Elen and Melanie we will use the given financial inf... View the full answer