5 2018 150 1651 (10) Baby Got Beer Ceny income Statement Income Statement Sales Le Cost of Good 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 Taxes, le. Taxable income) Les Taxes Net Income Les Common Stock Dividends Addition to Retained Earnings 16) $ $ $ $ 5 $ $ $ $ $ $ (20) (16) (15) 18 Assets Current Ants Cash Accounts Receivable Inventory Total Baby Got Bock Beer Company Balance Sheet 2018 2017 Liabilities & Equity $ 13 $ 12 Current Liabities Accrued Wages & Taxes S $ 35$ Accounts Payable $ $ 60 $ 50 Notes Payable $ $ 108$ 92 Total 2017 10 $ 7 21 5 20 235 20 545 Feed Ants $ 5 855 1395 80 127 Gross Plant & Equipment Less: Depreciation Net Total Feed Assets Other Assets 20 $ 125 $ 100 Long Term Debt $ (15) 19) Tetal Dete $ 110$ 91 10$ 10 Stockholder's Equity Common Stock Retained Earnings Total Equity $ 228 $ 193 Total Liabilities & Equity -100 million common shores outstanding $ $ $ $ 25$ 64 $ 895 228 $ 66 193 Total Assets Fat Tire Ale Comany income Statement Income Statement Sales Lew: Cost of Goods Sold Gross Profit Les Other Operating Expenses EBITDA tarings Before Interest, Tas, Depreciation & Amu) Les Depreciation & Amortization EBIT (Earnings Before Interest & Taxes Less interest EBT Earnings Before Taxes, le Taxable income) Less: Tees Net Income Les Common Stock Dividends Addition to retained Earnings 2018 $ 124 $ $ 5 124) $ 40 $ (12) $ 5 18) S 20 $ 7 $ 13 $ - $ 13 2017 Assets Current Assets Fat Tire Ale Company Balance Sheet 2018 Liabilities & Equity 2013 $ 24 $ 24 Current Liabilities Accrued Wages & Taxes 5 $ 22 $30 Accounts Payable 102 S $ 160 S 144 Notes Payable $ 315 $ 2065 196 Total $ 2005 Accounts Receivable Inventory Total 56 104 29 189 $ $ Fixed Assets 157 $ 3575 140 329 Gross Plant & Equipment Less Depreciation Net Total Red Assets Other Assets $ 305 $ 277 Long Term Debt S021) 19) Total Debt $ 264 268 $ 335 33 Stockholder's Equity Common Stock Retained Earnings Total Equity $ 523 $ 499 Total Liabies & Equity * 50 million shares outstanding $ $ 5 $ 114 S 32 $ 166 5235 151 19 170 Total Assets Wir urrurystrewewing u Sman 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 of $4,95 per share. 1 2 3 4 5 6 7 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). 139 - 89 - Compute ROE for 2018 (ROE is a %, please compute to two decimal places). 3389 = 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 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 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 (i.e. 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