(c) comment on the relative profitability of these companies.(D) based on your calculations above, identify two main reasons for the difference in their profitability. 25.FilePasteE875678910111213141516171819HomeCutLe CopyEditFHFormat PainterClipboardInsert Page Layout Formulas2021 RequiredCalibriBIU-ENet salesCost of goods soldOperating expensesInterest expenseIncome tax expenseCashOther current assetsLong-term assets (net)Current liabilitiesLong-term liabilitiesShare capitalRetained earningsNet salesCost of goods soldGross marginOperating expensesInterest expensefox 16.4%AP12-1B AP12-14BAccessibility: Investigate-11FontType here to searchE XABDEF3 Comparative financial statement data for UCW Brewery Ltd. and SFU Beer Ltd., two competitors, follow (amounts in thousands):4$$Data Review View HelpÀ ÀS.A.+с с202419UCW Brewery Ltd.2,06,7001,00,50085,4007,8004,70012,000 $86,0002,10,00071,9001,03,90051,20081,000ENT22 a) Prepare a common-size analysis for 2024 for UCW Brewery Ltd. and SFU Beer Ltd.23242526272829302,06,7001,00,5001,06,20085,4007,8002023UCW Brewery Ltd.Amount $10,00080,5002,09,60060,8001,17,50048,50073,300O.%100.0%48.6%51.4%41.3%3.8%AlignmentBi$ab Wrap TextTell me what you want to do$Merge & Center -Common size analysis for income statement2024SFU Beer Ltd.40,50015,30017,1903701,1304,500 $8,20029,1003,9008,00017,80012,100FSFU Beer Ltd.Amount $40,50015,30025,20017,190370Individual Assignment Excell14Percentage42023%40Number2,5007,40030,7004,0007,40016,70012,500%100.0%7.4%12.2%8.3%0.2%noG+wwwConditional Format asFormatting Table StStylesHFinancial managers examine financiafinancial data each line item is expresReturn on assetsCalculation formul File4PasteE8722232425262728293031323334353637383940414243444546474849EditHHomeCutE Copy -ClipboardAa)b)Format PainterInsertEXPage LayoutCalibriBIUNet salesCost of goods soldGross marginOperating expensesInterest expenseIncome tax expenseNet earningsTotal assetsTotal shareholders' equity✓ fix 16.4%Average total assetsAverage total sh equityReturn on assets (ROA) =Return on equity (ROE) =VAP12-1B AP12-14BFormulasAccessibility: InvestigateType here to searchFont$1.Ś11BCDEPrepare a common-size analysis for 2024 for UCW Brewery Ltd. and SFU Beer Ltd.$$Data Review ViewΑΔ& A.+▾2,06,7001,00,5001,06,20085,4007,8004,7008,30020241SaUCW Brewery Ltd.Amount $=UCW Brewery Ltd.Calculate the return on assets and the return on shareholders' equity for both companies.30,800 $1,32,200 $2.73%304050 (308000+300100)/2127000 (132200+121800)/26.54%NCommon size analysis for income statement%100.0%48.6%51.4%41.3%OHelp← →2023Alignment3.8%2.3%4.0% $II$ab Wrap TextсTell me what you want to do3,00,100 $1,21,800 $Merge & CenterAmount $40,50015,30025,20017,1903701,1306,510SFU Beer Ltd.2024SFU Beer Ltd.41,800 $29,900 $41200 (41800+40600)/229550 (29900+29200)/21915.80%22.03%Individual Assignment - ExcelPercentageQF% 92023Number%100.0%7.4%12.2%8.3%0.2%0.5%3.1%40,60029,200+0Yno.004.0GConditional Format asFormatting Table StyleStylesFinancial managers examine financial afinancial data each line item is expresse*ROA =H*ROE =Return on assetsCalculation formula$262,850$97,450Net earningsAvg total assetsNet earningsAvg sh equity

Introduction:- 1)Grass profit margin is the difference between net sales and cost of good sold 2)Net…

Answered: (c) comment on the relative…

(c) comment on the relative profitability of these companies. (D) based on your calculations above, identify two main reasons for the difference in their profitability.

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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