Financial Ratios (Alternate is 12-46.) This problem uses the same data as problem 12-43, but it can be solved independently. Price-Break and Low-Cost are both discount store chains. Condensed income statements and balance sheets for the two companies are shown in Exhibit 12-15.

Amounts are in thousands. Additional information: Cash dividends per share: Price-Break, $2.00; Low-Cost, $1.50. Market price per share: Price-Break, $30; Low-Cost, $40. Average shares outstanding for 20X9: Price-Break, 15 million; Low-Cost, 7 million.

1. Compute the following ratios for both companies for 20X9:

(a) current,

(b) quick,

(c) accounts receivable turnover,

(d) inventory turnover,

(e) total-debt-to-total-assets,

(f) total-debt-to- total-equity, (g) ROE, (h) gross profit rate, (i) return on sales, (i) asset turnover, (k) pretax return on assets, (!) EPS, (m) P-E, (n) dividend-yield, and (o) dividend-payout. Total debt includes all liabilities. Assume all sales are on credit. 2. Compare the liquidity, solvency, profitability, and market price and dividend ratios of Price-Break with those of Low-Cost.