Extracted text: Financial Analysis Activity Comparative statement data for P Company and Q Company-competitors-appear on the following page. P Company Q Company 2003 2002 2003 2002 Net sales $100,000 30,000 15,000 1,000 S80,000 Gross profit Operating expenses Amortization expense Interest expense Income tax expense 30,000 20,000 1,500 400 1,000 500 2,000 6,000 Net income 12,600 Cash 1,000 1,000 10,000 40,000 62,600 30,000 21,000 40,000 22,600 4,000 Accounts receivable 11,000 24,000 22,000 7,000 30,000 110,000 Other current assets 8,000 21,000 5,000 27,000 1,000 17,000 Capital assets (net) 20,000 Current liabilities 92,000 10,000 4,000 28,000 Long-term liabilities 40,000 10,000 1,000 23,000 Common stock Retained earnings Instructions (a) Prepare a vertical analysis of the 2003 income statement data for P and Q. (b) Compute the return on common shareholders' equity for both companies for 2003. (c) Compare receivable collections between the two companies for 2003. (d) Compare the short-term liquidity of the two companies for 2003.