• Use the comparative analysis below for S&J Plumbing, Inc. to determine if S&J Plumbing's return on assets is comparable to its competitors in the same industry.
• The income statements for competitors are attached
• Support your answers.

S&J Plumbing1

Assets Liabilities Cash $100 Notes payable-bank $200 Net Account Receivable $400 Account Payable $300 Inventory $200 Accrued expenses $100 Total current assets $700 Total Current Liabilities $600Comparative Analysis Ratio S&J 2010 Higher Median Lower Return on sales 6.3 3.3 Return on Assets 14.4 19.6 4.1 -3.8ABC Incorporated Income Statement For the Year Ended December 31. 2009 Sales revenues Sales S 922,100 Less: Sales discounts 5,000 Net sales 917,100 Cost of goods sold 709,900 Gross profit 207,200 Operating expenses Salaries expense $71,300 Depreciation expense- -buildings 10,000 Utilities expense 9.400 Depreciation expense-equipment 9.000 Repair expense 8.900 Gas & oil expense 7.200 Insurance expense 4.800 Total operating expenses 120,600 Income from operations before interest and income tax expenses 86,600 Other expenses and losses Interest expense 5,500 Income from operations before income taxes $81,100 Income tax expense 24,330 81, 100 x 30 = 24,330 Income from contuing operations before extraordinary loss $ 56,770 Extraordinary Loss (20,000) Net income $ 36,770 Notes: Cash dividends are included as reduction on the Statement of Retained Earnings and are not included on the Income Statement. The change in depreciation estimate would have been recorded in 2008 and already included in the depreciation entry. Additional entries are not neededGrow-Rite Vitamin Co. Income Statement Sales $760,000 $185,000 $575,000 Beginning inventory $105,000 105000 Purchases $385,000 $135,000 250000 Inventory write-down $50,490 50490 Less: ending inventory -$140,000 -140000 Cost of sales $350,000 265490 Gross Profit $410,000 $309 510 Selling expenses $176,000 176000 Administrative expenses $142,000 A $32,900 109100 Total Expenses $318,000 285100 Net income $92,000 $403,390 $403,390 $24,410