Reference no: EM132600955

Problem 1: Perform a vertical analysis (common size) for each company. Use condensed Balance Sheet and Income Statement data to perform the calculations.

Problem 2: Which company was more effective in improving its profitability (either decreasing costs or increasing sales)? Has either company increased its Gross Profit or Net Income? What factors stated in the Annual Report might have contributed to this?

Problem 3:  Perform a ratio analysis on each company to determine liquidity, solvency, and profitability.

Problem 4: Which company has improved the Debt to Asset and Equity to Asset Ratios?

Problem 5: Compare and contrast each company, making your recommendations as to which one would be the best investment in the short run and in the long run.

Problem 6: Prepare ann summary of your recommendations, including a vertical analysis, showing both companies' financial highlights side by side, and a spreadsheet showing at least five ratios, comparing liquidity, solvency, and profitability for both companies