Calculate the profit margin on sales for each company
Course:- Finance Basics
Reference No.:- EM131251714

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For the financial year 2013 the following financial statement data were available for Big Blue Pots Ltd and Small Red Pots Ltd. two competitor companies

a) Prepare 2013 income statements with a vertical analysis for Big Blue Pots Ltd and Small Red Pots Ltd.

b) Calculate the Current ratio for each company for 2013.

c) Calculate the Quick ratio for each company for 2013.

d) Calculate the Profit Margin on Sales for each company for 2013.

e) Calculate the Gross Profit Margin for each company for 2013.

f) Based on your analysis above explain which company would you invest in?

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