Using the following financial statements for ZZZZ Best:

a. Prepare a common- size balance sheet and income statement for the three- month interim period ending July 31, 1986.

b. Compute the following financial ratios for the three- month interim period ending July 31, 1986:

Profitability

• Gross margin percent

• Return on sales

• Return on assets

• Return on equity

Efficiency

• Total asset turnover

• Accounts receivable turnover

• Accounts receivable days Leverage

• Debt to assets

• Equity to assets

• Debt to equity

• Equity multiplier

Liquidity

• Current ratio

• Acid test ( quick) ratio

• Net working capital