Selected financial data for a recent year for two clothing competitors, Le Chteau Inc. and Reitmans (Canada)

Selected financial data for a recent year for two clothing competitors, Le Château Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except share price):

Instructions
(a) For each company, calculate the following values and ratios. Where available, industry averages are included in parentheses.
1. Working capital (n/a)
2. Current ratio (1.8:1)
3. Debt to total assets (57%)
4. Basic earnings per share (n/a)
5. Price-earnings ratio (20.0 times)
(b) Compare the liquidity, solvency, and profitability of the two companies and their industry.

Transcribed Image Text:

Current assets Total assets Current liabilities Total liabilities Loss to common shareholders Share price Le Château Reitmans $116,724$319,362 168,490 542,083 36,038 121,172 08,136 160,915 (35,745) (24,703) $o.27$3.96 Weighted average number of common shares29.964 64,079