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Question Complebah SATU 4 10 1. Friendly Bookstore has experienced rapid growth since s toonation in 2017, Following is selected data from its annual report 2018 2017 Item Sales 2020 2019 $1,512,000 $1.164,000 $1,000,000 $840,000 Cost of Goods Sold $717,600 $618,000 $504,000 Net Income $42,000 $1,165,200 $63,600 $55,200 $46,800 $1,320,000 $1,076,400 $921,000 171.406 Total Assets $763,000 Number of Books Sold 146,384 126,400 135,561 Required: a. Perform a horizontal common-size analysis of the data given. [5 marks] Item 2020 2019 2018 2017 Sales Cost of Goods Sold Net Income. Total Assets Number of Books Sold b. Comment on the results 13 marks 1 mark eachl 12 points 10 1 Comment on the results [3 marks 1 mark each) 1. Sales/COGS 2 Assets/ Sales 3. Number of books sold/Sales 2 Discuss the economic characteristics of firms that have the following mix of profit margin and asset turnover. In addition, provide an example of an industry that would have the relevant profit margin asset turnover mix a. High profit margin and low asset turnover (2 marks] b. Low profit margin and high asset turnover [2 marks] hp Quiration Completion statu 2 2. Discuss the economic characteristics of firms that have the following mix of profit margin and asset turnover. In addition, provide an example of an industry that would have the relevant profit margin asset tumover mix High profit margin and low asset tumover. [2 marks] b. Low profit margin and high asset turnover [2 marks] a b 10 For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) B IVS Paragraph V Anal 5 FE E 8. BE X X (1) M 10pt 17 17. 1 [+ Y Ex A 1122@ I. X www F PR O WORDS POWERED BY TINY