Please answer question (c).... What can you surmise about the relative profitability of the two companies given the two ratio calculations?

II. Financial statement information for Acer Enterprise and Casey Inspectors are below. They compete in the same industry. The balance sheet data are as of December 31, 2013, and December 31, 2012. Acer Enterprise Casey Inspectors 2013 2012 2013 2012 Net sales $1,549,0351 $339,038 Cost of goods sold 1,080,490 241,000 Operating expenses 302,275 79,000 Interest expense 8.9801 2.252 Income tax expense 54,5001 6,650 Current Assets 325,975 312,410 83,336 79,467 Common Stock, S10 par 500.000 500.000 120,000 120,000 Retained earnings 173.460 146,595 38,096 28,998 Non-current liabilities 108,500 90,000 29,620 25,000 Current liabilities 65,325 75,815 35,348 30,281 REQUIRED: (a) Using data provided above develop a common-size income statement for 2013 for Acer Enterprise and Casey Inspectors in columnar form. (b) Compute the following: (a) Return on Assets (Net Income/Average total assets), and (b) Return on total equity (net Income/Average shareholders' (c) What can you surmise about the relative profitability of the two companies given the two ratio calculations? Net Sales COGS Gross Profit Operating Expenses Net Operating Income Interrest Expense Income Tax Expense Net Income Common-Size Income Statement for 2013 Acer Enterprise Casey Inspectors $ % $ % $1,549,035 100.00% $339,038 100.00% $1,080,490 69.75% $241,000 71.08% $468,545 30.25% $98,038 28.92% $302.275 19.51% $79.000 23.30% $166,270 10.73% $19,038 5.62% $8.980 0.58% $2,252 0.66% $54,500 3.52% $6,650 1.96% $102,790 6.64% $10,136 2.99% (b) Compute the following: (a) Return on Assets (Net Income/Average total assets), and (b) Return on total equity (net Income/Average shareholders' Return on Asset 32.2% Acer Casey 12.5% Return on Total Equity Acer 15.6% Casey 6.6% (e) What can you surmise about the relative profitability of the two companies given the two ratio calculations