1. Compute for the profitability ratios of both Elen and Melanie. Which of the two companies do you believe is more profitable?
Extracted text: Assessment Task 1- COMPREHENSIVE PROBLEMS Below are the comparative Statement of Comprehensive Income and Statement of Financial Position of Elen Company and Melanie Company 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 119,900.00 14,630.00 expenses Interest expense 19,756.00 4,954.40 Net Income P226,182.00 P22,299.20 Statement of Financial Position Elen Company Melanie Company 2020 2019 2020 2019 Cash 71,715.00 96,102.00 48,774.00 49,939.20 Accounts Receivable 350,000.00 345,600.00 75,675.00 68,543.00 Inventory Prepaid Assets 275,430.00 43,890.20 15,000.00 225,600.00 40,345.20 20,000.00 20,000.00 16,000.00 Equipment, 1,146,882.00| 1,100,000.00 | 307,402.60 | 276,786.40 net Total 1,864,027.00 1,787,302.00 | 490,740.80 | 451,613.80 Assets Current 143,715.00 166,793.00 77,765.60 66,618.20 Liabilities 55,000.00 Long-term liabilities 238,700.00 198,000.00 65,164.00 Owner's 1,481,612.00 1,422,509.00 | 347,811.20 | 329,995.60 Capital Total 1,864,027.00 1,787,302.00 490,740.80 451,613.80 Liabilities and Owner's Capital 1. Compute for the profitability ratios of both Elen and Melanie. Which of the two companies do you believe is more profitable?