Vertical analysis of comparative financial statements can indicate the success or failure of a business. As a loan officer for a bank, you must choose the company that will receive a $50,000 loan. To help make the decision, perform a vertical analysis of the two companies shown in the table below. In groups of two, decide who should receive the loan. Explain why you consider your company better able to repay the loan. Defend your decision to the class.

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Julia's Junk Store Laura's Lost Loot Cash Accounts Receivable Total Current Assets Total Assets Current Liabilities Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity Net Sales Cost of Sales Operating Expenses Net Income S 30,000 2,000 40,000 00,000 20,000 50,000 20,000 30,000 50,000 10,000 7,000 2,000 1,000 S 30,000 3,500 50,000 100,000 50,000 70,000 20,000 10,000 30,000 7,000 3,500 1,500 2,000