1 The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish 5 points Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 42,300 44,500 92,500 159,500 85,300 $ 424,100 $ 92,500 74,100 157,100 30,300 70, 100 $ 424,100 $ 19,700 34,990 47,800 416, 600 318, eee $ 837,800 $ $ 68,500 62,600 525, Bee 187, 300 73,600 $ 837, ese $ 427,500 (234,5ee) (163,680) ) $ 29,400 $ 789, eee (481,380) (312,300) $ 75,400 $ 23.3 45% $ $ 34,300 $ 28 45% $ 154,500 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as Its president has said, "We avold what we consider to be undue risk." Neither company is publicly held. Required: 1. Complete a schedule that reflects a ratlo analysis of each company. (Round your Intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (.e. 0.1234 should be entered as 12.34).) Answer is complete but not entirely correct. Ratio BLUE WATER COMPANY PRIME FISH COMPANY Profitability ratios: 1. Return on equity 2. Return on assets 10.6896 11.42% 6 6.93 % 9.01% 64.70 X 96 6.88% 18.57 % 9.56% 3. Gross profit percentage . 4. Net profit margin 5. Earnings per share . 6 Quality of income Asset turnover ratios: S 1.87 S 1.44 7. 1.01 0.94 Total asset turnover Fixed asset turnover 8. 2.68 1.89 9. 9 Receivable turnover 7.05 > 11.30 10 Inventory turnover 2.54 8.40 Liquidity ratios: 11. Current ratio 1.94 1.49 12 Quick ratio Cash ratio 0.94 0.48 0.80 0.29 13 4.84 % Solvency ratios: 14. Times interest earned ratio 15 Cash coverage ratio 16 Debt/equity ratio Market ratios: 17. Pricelearnings ratio 18. Dividend yield ratio 0.65 0.19 19.44 12.48 9.38% %6 10.50 % 96