Problem 4 Test 2 Triumph Industries Inc comparative financial statements for the years ending December 31, 2010 and 2009 are as follows. The market price for Triump Industries common stock was $ 20 on December 31, 2009, and $ 32 on December 31, 2010. Common stock shares outstanding for both 2010 and 2009 are 70000 shares (le S 700,000 $ 10 par). A) Perform vertical analysis on the income statement and the balance statement. B) Determine the ratios shown below C) Compare and comment on Triumph's financial ratios with the industry Triump Industries Comparative Income Statement For the Years Ended December 31, 2010 and 2009 2010 2009 7,000,000 325 $6,675,000 $5,670,000 Sales Sales returns and allowances Net Sales Cost of Goods Sold Gross Profit Selling Expenses Administrative Expenses Total Operating Expenses Income From Operations Other Income Earnings before Interest & taxes (EBIT Other Expenses (interest) Income Before Income Tax Income Tax Expense Net Income $175,000 $5,495,000 950 825 $780,000 $464,000 485 465 $658,000 $19,200 $677,200 $64,000 $613,200 $360,000 $385,000 $280,000 35 $245,000 $437,200 Triumph Industries Comparative Retained Earnings Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Retained Earnings, Januray 1 Add Net Income for year Total Deduct dividends 723,000 245 968,000 355,800 437 793,000 Preferred Stock Common Stock Total 40,000 45,000 85,000 40,000 30,000 70,000 723,000 Retained Earnings, December 31 Triump Industries Comparative Balance Statement December 31, 2010 and 2009 12-31-2010 12-31-2009