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1. a. Current ratio b. Cash ratio c. Inventory turnover d. Accounts receivable turnover 2. Compare the companies performance for 2025 and 2024. Make a
| 1. | |||||||||
| a. Current ratio | |||||||||
| b. Cash ratio | |||||||||
| c. Inventory turnover | |||||||||
| d. Accounts receivable turnover | |||||||||
| 2. | Compare the companies performance for 2025 and 2024. Make a recommendation to | ||||||||
| Canyon Canoe Company about investing in these companies. Which company would be a | |||||||||
| better investment, The Paddle Company or Recreational Life Vests? Base your answer on | |||||||||
| ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to | |||||||||
| pay long-term debt, profitability, and attractiveness as an investment. | |||||||||
| Solution: | |||||||||
| a. Current ratio | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| b. Cash ratio | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| c. Inventory turnover | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| d. Accounts receivable turnover | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| e. Gross profit percentage | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| f. Debt ratio | |||||||||
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| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| g. Debt to equity ratio | |||||||||
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| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| h. Profit margin ratio | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| i. Asset turnover ratio | |||||||||
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| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| j. | Rate of return on common stockholders equity | ||||||||
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| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| k. Earnings per share | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| l. Price/earnings ratio | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| m. Dividend yield | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
| n. Dividend payout | |||||||||
| PC 2025 | |||||||||
| PC 2024 | |||||||||
| RLV 2025 | |||||||||
| RLV 2024 | |||||||||
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Entrepreneurial Finance Venture Capital Deal Structure And Valuation
Authors: Janet Kiholm Smith, Richard L. Smith
2nd Edition
1503603210, 978-1503603219
