Comparative Ratio Analysis
The following are comparative data for Sunshine State Equipment, Inc., for the three-year period 2013–2015.
Instructions:
1. From the foregoing data, calculate financial ratios for the three years 2013–2015 as follows (for all ratios using balance sheet amounts, use the end-of-year balance): (a) Return on equity (b) Return on sales (c) Asset turnover (d) Assets-to-equity ratio (e) Return on assets (f) Current ratio (g) Dividend payout ratio
2. Based on the ratios calculated in (1), evaluate Sunshine State Equipment, Inc., in 2015 as compared with 2014.