3 4 6 You are a financial analyst reviewing a small beer business, the Baby Got Bock Beer Company (NYSE Ticker: BOCK). TR financial statements are located in the Appendix in BLUE. BOCK shares are trading at $4.95 per share. 1 Calculate the Cash Ratio for 2018 (to two decimal places). 2 Compute Total Assets Turnover Ratio for 2018 (to two decimal places). 150 9108 = Compute Debt-To-Equity Ratio for 2018 (to two decimal places). 139 = 89 = Compute ROE for 2018 (ROE is a %, please compute to two decimal places). 3389 = 5 Compute Price-to-Earnings Ratio for 2018 (to two decimal places). You are comparing BOCK to a rival beer company, Fat Tire Ale (NYSE Ticker: FTA). Their financial statements are loca the Appendix in GREEN FTA shares are trading at $5.20 per share. Calculate the Cash Ratio for 2018 (to two decimal places). Compute Total Assets Turnover Ratio for 2018 (to two decimal places). Compute Debt-To-Equity Ratio for 2018 (to two decimal places). Compute ROE for 2018 (ROE is a %, please compute to two decimal places). Compute Price-to-Earnings Ratio for 2018 (to two decimal places). Now, you'd like to compare the two companies based on the financial ratios you computed above. Don't computer ratios, just use the ones you computed already (above). 11 Which company (BOCK or FTA) has stronger liquidity? 12 Which company (BOCK or FTA) has stronger asset management? Which company (BOCK or FTA) has stronger debt management (i.e. less debt relative to capital structure)? Which company (BOCK or FTA) has stronger profitability? 7 8 9 10 13 14 15 Which company (BOCK or FTA) has the higher market valuation (based on having a higher P/E Ratio)? Lew Cost of Goods Sold Gross Pro Les Other Operating Expenses EBITDA (Earnings Before Interest, Depreciation & A Lewe Depreciation & Amortation EBIT (Earnings Before Interest & Les interest EBTE amings Before Taxes e Taxable income) Les Taxes Net Income Les Common Stock Dividends Addition to retained Earnings 5 $ $ $ $ 5 5 $ $ 150 (65) 35 (10) 75 (6) 69 (20) 49 (16) 33 (15) 1B $ $ $ Assets Current Assets Accounts Receivable Inventory Total Baby Got Bock Beer Company Balance Sheet 2018 2017 Labte Equity 2018 2017 $ 13 S 12 Current abilities Acerved Wages & Taxes 5 10 $ 7 $ 25 S 30 Accounts Payable $ 21 $ 20 $ 60 $ 50 Notes Payable $ 23 5 S 108'S 92 Total $ 54 $ 47 Fred Assets Gross Plant & Equipment Les: Depreciation Net Total Fed Assets Other Assets $ $ $ $ S $ 85$ 1395 RO 127 125 $ 100 Long-Term Debt (15) $ L9) Total Debt 110 $ 91 10 $ 10 Stockholders Equity Common Stock Retained Earnings Total Equity 228 $ 193 Totalbes & Equity 100 million common shores outstanding $ $ $ $ Total Assets $ 895 228 S 46 66 193 $ Fat Tire Ale Company income Statement Income Statement Sales Less Cost of Goods Sold Gross Profit Less: Other Operating Expenses EBITDA (Earnings Before Interest, Taxes, Depreciation & Ame) Less: Depreciation & Amortization EBIT (Earnings Before Interest & Taxes Les interest EBT(Earnings Before Tanele. Taxable income) Less: Taxes Net Income Less: Common Stock Dividends Addition to Retained Earnings 2018 S 124 $ 160) $ $ 024) $ 40 s (12) 5 5 (8) $ 20 $ 7 $ $ $ 13 Current Awets Cash Accounts Receivable Inventory Total Fat Tire Ale Company Balance Sheet 2011 2017 Liabilities & Equity 2018 2017 $ 24 $ 24 Current Liabilities Accrued Wages & Taxes $ 675 22 $ Accounts Payable 5 1025 104 $ 1605 144 Notes Payable $ 315 $ 206 S 198 Total 5 2005 Reed Assets $ os $ 277 Long Term Debe 5015 19 Total Dete $ $ 157 $ 357 $ 140 329 Gros Plant & Equipment Less: Depreciation Net TotalFeed Assets Other Assets $ Common Sock Retained Earnings Total Equity $ 134 $ $ 5 1665 $ 151 19 170 an $ Total Assets 1 2 3 4 5 6 7 You are a financial analyst reviewing a small beer business, the Baby Got Bock Beer Company (NYSE Ticker: BOCK). Their financial statements are located in the Appendix in BLUE BOCK shares are trading or $4.95 per share. Calculate the Cash Ratio for 2018 (to two decimal places). Compute Total Assets Turnover Ratio for 2018 (to two decimal places). 150 . 108 = Compute Debt-To-Equity Ratio for 2018 (to two decimal places). 134 = 89 = Compute ROE for 2018 (ROE is a %, please compute to two decimal places). 33789 = Compute Price-to-Earnings Ratio for 2018 (to two decimal places). You are comparing BOCK to a rival beer company, Fat Tire Ale (NYSE Ticker: FTA). Their financial statements are located in the Appendix in GREEN FTA shares are trading of $5.20 per share. Calculate the Cash Ratio for 2018 (to two decimal places). Compute Total Assets Turnover Ratio for 2018 (to two decimal places). Compute Debt-To-Equity Ratio for 2018 (to two decimal places). Compute ROE for 2018 (ROE is a %, please compute to two decimal places). Compute Price-to-Earnings Ratio for 2018 (to two decimal places). Now, you'd like to compare the two companies based on the financial ratios you computed above. Don't compute new ratios, just use the ones you computed already (above). Which company (BOCK or FTA) has stronger liquidity? Which company (BOCK or FTA) has stronger asset management? Which company (BOCK or FTA) has stronger debt management (ie, less debt relative to capital structure)? Which company (BOCK or FTA) has stronger profitability? Which company (BOCK or FTA) has the higher market valuation (based on having a higher P/E Ratio)? 8 9 10 11 12 13 14 15 Baby Got Bock Beer Company income Statement income Statement Sales Less: Cost of Goods Sold Gross Profit Less: Other Operating Expenses EBITDA (Earnings Before Interest, Taxes, Depreciation & Ama) Less: Depreciation & Amortization EBIT (Earnings Before Interest & Taxes) Less: Interest EBT(Earnings Before Taxes, Le. Taxable income) Lese: Taxes Net Income Less: Common Stock Dividends Addition to retained Earnings 2018 $ $ 165) 5 85 $ (10) $ 75 $ (6) $ 69 $ (20) 5 $ (16) $ 33 5 (15) $ IR Assets Current Assets Cash Accounts Receivable Inventory Total Baby Got Bock Beer Company Balance Sheet 2018 2017 Liabilities & Equity $ 13 $ 12 Current Liabilities Accrued Wages & Taxes $ $ 355 30 Accounts Payable $ $ 60 $ 50 Notes Payable $ 'S 108 $92 Total 5 2017 10$ 7 21 $ 20 23 $ 20 545 47 Faed Assets 80 $ $ 85 $ 1395 127 Gross Plant & Equipment Les: Depreciation Net Total Faed Assets Other Assets 25$ $ 125 $ 100 Long-Term Debt $ (15) $ 19) Total Debt $ 110$ 91 $ 105 10 Stockholder's Equity Common Stock Retained Earnings Total Equity $ 228 $ 193 Total Liabilities & Equity *100 million common shares outstanding 20 46 $ $ $ $ 89 $ 228 $ Total Assets 193 Fat Tire Ale Company Income Statement Income Statement Sales Less: Cost of Goods Sold Gross Profit Less: Other Operating Expenses EBITDA (Earnings Before Interest, Taxes, Depreciation & Am] Less: Depreciation & Amortization EBIT (Earnings Before Interest & Taxes) Les interest EBT(Earnings Before Taxes Le Taxable income) Les Taxes Net Income Less Common Stock Dividends Addition to Retained Earnings 2013 $ 124 $ (60) 's 64 $ (24) 5 40 S (12) $ 28 $ (8) $ 20 $ 7 $ $ $ Current Assets Cash Accounts Receivable Inventory Total $ $ $ Fat Tre Ale Company Balance Sheet 2013 2017 Liabilities & Equi 2011 2017 245 24 Current Liabilities Accrued Wages & Taxes S 67 5 56 225 30 Accounts Payable 102 $ 104 160 $ 146 Notes Payable $ 315 206'5 198 Total $ 200 $ 189 1575 140 Feed Assets $ $ 3575 Gross Plant & topment Less: Depreciation Net Total Feed Assets Other Assets $ $ $ $ 305 5 277 Long-Term Debe 11 191 Total Debt 284 $ 268 335 33 Stockholder's Equity Common Stock Retained Earnings Total Equity 523 $ 499 Total Labories & Equity 50 million shores outstanding 5 5 5 $ 325 1665 5235 151 19 170 $ Total Assets