Selected financial statement data for a recent year for Chen Corporation and Caissie Corporation, two competitors, are

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Selected financial statement data for a recent year for Chen Corporation and Caissie Corporation, two competitors, are as follows:

Selected financial statement data for a recent year for Chen

Instructions
(a) Calculate working capital and the current ratio for each company. Comment on their relative liquidity.
(b) Calculate the debt to total assets ratio for each company. Comment on their relative solvency.
(c) Calculate the profit, earnings per share, and price-earnings ratio for each company. Assume that the profit you calculate equals the profit available to common shareholders. Comment on the two companies' relative profitability.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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