ad the ice 1425 www. for the n a on credit) Died Everyone 42. of Goods Sold 10.000 sheet and market price is at the of the year 524.00 $20.00 A Receivable, Net Merchandise inventory Prepaid Expenses Tural Current Assets $265.000 5323000 105,000 12.000 Current Liabilities Tal Liabilities Common Stock si par (12.000 shares) Si par (17.000 shares) foul Stockholders' Equity wurket Price per Share of Common Stock Duidends Paid per Common Share 17,000 195,000 114 48 161,000 76.50 1.10 mber 31, 2018, and 8 and 15,000.00 Decem and balance sheet data at the bag of the current year: Digitalized Every Zone $ 41.000 81,000 261,000 $ 54.000 87,000 272,000 chmon Balance Sheet Accounts Receivable, net Merchandise Inventory Total Assets Common Stock: $1 par (12,000 shares) 51 par (17,000 shares) 12,000 of common stock 17,000 Learning Object 4 Using rate w that you the digital wa Every Zone, In 1. Digitalized e. 54 as to decide between two stock investments are purchasing an investment and have decided to invest in a com- phone business. You have narrowed the choice to Digitalized Corp. tec, and have assembled the following data ement data for the current year: income statement data for the cure Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Digitalized $423,035 210,000 0 51,000 Every Zone $493,845 260,000 19,000 72,000 4,000 2.000 ce sheet and market price data at the end of the current year: Selected balance Digitalized Every Zone Current Assets: Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock: $1 par (12,000 shares) $1 par (17,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share $ 24,000 40,000 40,000 66,000 23,000 $ 193,000 $ 266,000 105,000 105,000 $ 17,000 14,000 48,000 97,000 12,000 $ 188,000 $ 323,000 96,000 128,000 12,000 161,000 76.50 1.10 17,000 195,000 114.48 1.00 Selected balance sheet data at the beginning of the current year: Digitalized Every Zone $ 41,000 81,000 261,000 $ 54,000 87,000 272,000 Balance Sheet: Accounts Receivable, net Merchandise Inventory Total Assets Common Stock: $1 par (12,000 shares) $1 par (17,000 shares) 12,000 17,000 948 chapter 17 price/carring alyzed all other Your strategy is to invest in companies that have low price to be in good shape financially. Assume that you have analys that your decision depends on the results of ratio analysis. for the current year: e. Earnings per share of Requirements 1. Compute the following ratios for both companies for the a. Acid-test ratio stock b. Inventory turnover c. Days' sales in receivables d. Debt ratio 2. Decide which company's stock better fits your investment strategy Requireme Analyze the to invest in 1. Tree 2. Pro 3. Evo 4. Ev 5. E 6. S f. Price/earnings ratio g. Dividend payout > Probler P17-30B Nets Cort 2015 Learning Objectives 2,4 P17-29A Completing a comprehensive financial statement analysie In its annual report, ABC Athletic Supply, Inc. includes the following five 18: Inventory turnover 8.04 financial summary: ABC ATHLETIC SUPPLY, INC. Five-Year Financial Summary (Partial; adapted) amounts in thousands except per share data) 2018 2017 2016 2015 2014 s Revenue $ 250,000 $216,000 $191,000 $ 161,000 $134,000 Revenue Increase 16% 13% 19% 20% 17% Comparative Store Sales Increase 5% 6% 4% 7% 9% ome-Net 2,110 1,840 1,760 1,690 1,330 ods Sold 189,250 164,592 148,216 126,385 106,396 Net Sale Net Inc Ending
