P12-2 (Algo) Analyzing Comparative Financial Statements by Using Component Percentages and Selected Ratios LO12-5, 12-7, 12-10 The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earningst Year 2 Year 1 $324,420* $275,000 272,590 230,000 51,830 45,000 35,110 31,600 16,720 13,400 5,130 3,900 $ 11,590 $ 9,500 $ 4,480 $ 9,000 19,120 23,000 54,760 48,000 36,650 $115,010 $ 10,760 39,660 31,000 $111,000 $ 13,000 38,600 42,000 42,000 22,590 $115,010 17,400 $111,000 *One-third was credit sales. Required: 1. 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.) Answer is complete and correct. Component Percentages Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Year 2 100 % 84 % 16 % 11 % 5 % 2 % 3 % Income tax expense Net earnings Statement of financial position: Cash 4% Accounts receivable (net) 17% Inventory 48 % Property, plant, and equipment (net) 31 % Total assets 100 % Current liabilities 9 % Long-term liabilities 34 % Common shares Retained earnings Total liabilities and shareholders' equity 37 % 20 % 100 % 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) Answer is not complete. 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., 0.1243 should be entered as 12.43.) > Answer is not complete. Return on assets % 2-g. Return on equity. (Round percentage answer to 2 decimal places i.e., 0.1243 should be entered as 12.43.) Return on equity %