P$12-2($Algo$)$ Analyzing Comparative Financial Statements by Using Component Percentages and

Selected Ratios L$012-5,12-7,12-10$

The comparative financial statements prepared at December $31,$ year $2,$ for Goldfish Company showed the following summarized data:

$*$One$-$third was credit sales.

$$During Year $2,$ cash dividends amounting to $$6,500$ were declared and paid.

Required:

Present component percentages for Year $2$ only. $($Input all amounts as positive values. Round the final answers to the nearest

whole percent. Percentages may not add exactly due to rounding.$)$

Compute the following for year $2$:

$2-$a$.$ Gross profit margin ratio. $($Round percentage answer to $1$ decimal place i$.$e$.,0\mathrm{.}124$ should be entered as $12\mathrm{.}4.)2-$d$.$ Percentage of total resources invested in property, plant, and equipment. $($Round percentage answer to $2$ decimal places i$.$e$.,$

$0\mathrm{.}1243$ should be entered as $12\mathrm{.}43.)$

Percentage

$2-$e$.$ Debt$-$to$-$equity ratio. Interpret the result. $($Round the final answer to $2$ decimal places.$)$

Debt$-$to$-$equity ratio

Poor

$2-$f$.$ Return on assets. $($Round intermediate calculations to $3$ decimal places and percentage answer to $2$ decimal places i$.$e$.,0\mathrm{.}1243$

should be entered as $12\mathrm{.}43.)$

$2-$g$.$ Return on equity. $($Round percentage answer to $2$ decimal places i$.$e$.,0\mathrm{.}1243$ should be entered as $12\mathrm{.}43.$