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: Year 2 Year 1 Statement of Earnings Sales revenue $312, 590* $265, 000 Cost of sales 259, 620 219, 000 Gross profit 52, 970 46, 000 Operating expenses and interest expense 36, 750 33, 000 Earnings before income taxes 16, 220 13 , 000 Income tax expense 4,750 3, 600 Net earnings $ 11, 470 9, 400 Statement of Financial Position Cash $ 4,580 $ 9,200 Accounts receivable (net) 19,950 24, 000 Inventory 51, 340 45, 000 Property, plant, and equipment (net) 39, 010 33, 000 $114, 880 $111, 200 Current liabilities (no interest) 14,350 $ 17, 400 Long-term debt (interest rate: 10%) 41, 160 39, 700 Common shares (6,000 shares) 36, 000 36, 000 Retained earningst 23, 370 18, 100 $114, 880 $111, 200 *One-third was credit sales. During Year 2, cash dividends amounting to $6,200 were declared and paid. 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.) Component Percentages Year 2 Statement of earnings: Sales revenue |% Cost of sales 84 % Gross margin 16 % Operating expenses and interest expense 12 % Earnings before income taxes 4 % Income tax expense 2 % Net earnings 2 % Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity Compute the following for year 2: 2-a. Gross profit margin ratio. (Round percentage answer to 1 decimal place i.e., 0.124 should be entered as 12.4.) Average percentage 1%