41,000 Learnings The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash $ 41,600 $ 20,400 Accounts receivable (net) 32,800 Inventory 96,000 43,600 Property & equipment (net) 149,000 408,200 Other assets 84,600 311,000 Total assets $ 412,200 $ 816,000 Current liabilities $ 96,000 $ 58,000 Long-term debt (interest rate: 10%) 69,200 61,200 Capital stock ($10 par value) 152,200 518,000 Additional paid-in capital 29,600 106,600 Pinas 65,200 72,200 Total liabilities and stockholders' equity $ 412,200 $ 816,000 Income statement: Sales revenue (1/3 on credit) $ 438,000 $ 796,000 Cost of goods sold (238,000) (400,600) Operating expenses (162,200) (311,600) Net income $ 37,800 $ 83,800 Other data: Per share stock price at end of current year $ 22.6 $ 21 Average income tax rate 30% 30% Dividends declared and paid in current year $ 33,600 $ 151,000 Retained 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 avoid what we consider to be undue risk. Neither company is publicly held. Required: Required: 1. Complete a schedule that reflects a ratio analysis of each company. (Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Answer is not complete. Ratio BLUE WATER COMPANY PRIME FISH COMPANY 12.02% 15.30% 9.17% 10.26% 0.81 x % % Profitability ratios: 1. Return on equity 2. Return on assets 3. Gross profit percentage 4. Net profit margin 5. Earnings per share 6. Quality of income Asset turnover ratios: 8.63% 10.52% $ 2.48 $ 1.61 7 Total asset turnover 8. Fixed asset turnover 9. Receivable turnover 10. Inventory turnover Liquidity ratios: 11. Current ratio 12. Quick ratio 13. Cash ratio Solvency ratios: Times interest earned 14. ratio 15. Cash coverage ratio 16. Debt/equity ratio Market ratios: 17. Price/earnings ratio Dividend yield ratio 18. % %