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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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?
Transcribed Image Text: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
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