1. Compute for the profitability ratios of both Elen and Melanie. Which of the two companies do you believe is more profitable?2. Compute for the operational efficiency ratios of both Elen and Melanie. Which of the two companies do you believe is more efficient?3. Compute for the financial health ratios of both Elen and Melanie. Which of the two companies do you believe is more financially healthy? Page SetupStatement of Comprehensive IncomeElen CompanyMelanie Company2020 20192020 2019Net SalesP3.407.921.00P745.883.60Cost of Goods Sold2.377,078.00530.200.00Selling Expenses665,005.00173,800.00Gen and Admin expenses119,900 0014,630.00Interest expense19.756.004.954.40Net IncomeP226,182.00EP22,299.20Statement of Einancial PositionElen Company2০20: 2019 2020 201971715.00 96102 00 48 774.00350,000.00275 430.00 225 600 0020,000.00 20.000 001,146,882.00 1100 000 00 307 402.60 276 786 401,864,027.00 1787 302 00490,740.80 451 613.80Melanie Company29 939 2068 543.0040.345 2016 000.00CashAccounts ReceivableInventoryPrepaid AssetsEquipment netTotal AssetsCurrent Llabilities 143.715.00|Long term liabilitiesOwner's CapitalTotal Liabilities and Owners 1,864,027.00 1787 302 0o 490, 740.80 451613.80Capital345,600 00 75,675.0043 890.2015,000.00166.793 0077 765.60198 000 00 65,164.00 65 000.0066 618.20233,700.001.481,612.00 1.422 509.00 347811 20 329 995.60vate Windowsf 206 wordsEnglish Philippines

Profitability ratios consist of gross profit ratio, net profit ratio, and return of investment (ROI)…

Answered: 1. Compute for the profitability ratios…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Compute for the profitability ratios of both Elen and Melanie. Which of the two companies do you believe is more profitable? 2. Compute for the operational efficiency ratios of both Elen and Melanie. Which of the two companies do you believe is more efficient? 3. Compute for the financial health ratios of both Elen and Melanie. Which of the two companies do you believe is more financially healthy?

Page Setup
Statement of Comprehensive Income
Elen Company
Melanie Company
2020 2019
2020 2019
Net Sales
P3.407.921.00
P745.883.60
Cost of Goods Sold
2.377,078.00
530.200.00
Selling Expenses
665,005.00
173,800.00
Gen and Admin expenses
119,900 00
14,630.00
Interest expense
19.756.00
4.954.40
Net Income
P226,182.00E
P22,299.20
Statement of Einancial Position
Elen Company
2০20: 2019 2020 2019
71715.00 96102 00 48 774.00
350,000.00
275 430.00 225 600 00
20,000.00 20.000 00
1,146,882.00 1100 000 00 307 402.60 276 786 40
1,864,027.00 1787 302 00490,740.80 451 613.80
Melanie Company
29 939 20
68 543.00
40.345 20
16 000.00
Cash
Accounts Receivable
Inventory
Prepaid Assets
Equipment net
Total Assets
Current Llabilities 143.715.00
|Long term liabilities
Owner's Capital
Total Liabilities and Owners 1,864,027.00 1787 302 0o 490, 740.80 451613.80
Capital
345,600 00 75,675.00
43 890.20
15,000.00
166.793 00
77 765.60
198 000 00 65,164.00 65 000.00
66 618.20
233,700.00
1.481,612.00 1.422 509.00 347811 20 329 995.60
vate Windows
f 206 words
English Philippines

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