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

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

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 26E: Comprehensive income Anson Industries, Inc., reported the following information on its 20Y1 income...
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Problem 1:  
Compute for the profitability ratios of both Ellane and meLanie. Which of the two companies do you believe is more  
profitable? 
Problem 2: 
Compute for operational efficiency ratios of both Ellane and meLanie. Which of the two companies is more efficient? 
Problem 3: 
Compute for the financial health ratios of both ellane and meLanie. Which of the two companies is more  
financially healthy?

 

 

Below are the comparative Statement of Comprehensive Income & Statement of Financial Position of Ellane Company & Lanie Company: Statement of Comprehensive Income Ellane Company 2013 Melanie Company 2014 2013 2014 Net Sales Cost of Goods Sold 3,407,921.00 2,377,078.00 665,005.00 745,883.60 530,200.00 173,800.00 Selling Expenses General and administrative expenses 119,900.00 14,630.00 Interest Expense Net Income 19.756.00 26.182.00 4.954.40 P22,299.20 Statement of Financial Position Elane Company Lanie Company 2014 2013 2014 2013 96,102.00 345,600.00 225,600.00 20,000.00 1.100.000.00 1.787.302.00 49,939.20 68,543.00 40,345.20 16,000.00 Current Assets Accounts Receivable Inventory Prepaid Assets Equipment, net Total Assets 71,715.00 350,000.00 275,430.00 20,000.00 1.146.882.00 1.864.027.00 48,774.00 75,675.00 43,890.20 15,000.00 307.401.60 276.786.40 490,740.80 451,613.80 Current Liabilities 143,715.00 166,793.00 77,765.60 66,618.20 Long-Term Liabilities Owner's Capital 65,164.00 347.811.20 329,995.60 238,700.00 198,000.00 55,000.00 1.481.612.00 1.422.509.00 Total Liabilities and Owner's Capital 1.864,027.00 1.787.302.00 490.740.80 451.613.80
Transcribed Image Text:Below are the comparative Statement of Comprehensive Income & Statement of Financial Position of Ellane Company & Lanie Company: Statement of Comprehensive Income Ellane Company 2013 Melanie Company 2014 2013 2014 Net Sales Cost of Goods Sold 3,407,921.00 2,377,078.00 665,005.00 745,883.60 530,200.00 173,800.00 Selling Expenses General and administrative expenses 119,900.00 14,630.00 Interest Expense Net Income 19.756.00 26.182.00 4.954.40 P22,299.20 Statement of Financial Position Elane Company Lanie Company 2014 2013 2014 2013 96,102.00 345,600.00 225,600.00 20,000.00 1.100.000.00 1.787.302.00 49,939.20 68,543.00 40,345.20 16,000.00 Current Assets Accounts Receivable Inventory Prepaid Assets Equipment, net Total Assets 71,715.00 350,000.00 275,430.00 20,000.00 1.146.882.00 1.864.027.00 48,774.00 75,675.00 43,890.20 15,000.00 307.401.60 276.786.40 490,740.80 451,613.80 Current Liabilities 143,715.00 166,793.00 77,765.60 66,618.20 Long-Term Liabilities Owner's Capital 65,164.00 347.811.20 329,995.60 238,700.00 198,000.00 55,000.00 1.481.612.00 1.422.509.00 Total Liabilities and Owner's Capital 1.864,027.00 1.787.302.00 490.740.80 451.613.80
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