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Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Build
Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Build it Right, Inc., or Huff and Puff Co assemble the following data (Click the icon to view the income statement data) (Click the icon to view more information.) Read the requirement (Click the icon to view data at end of current year) (Click the icon to view data at beginning of current year) Requirement 4 a. Quick ratio: Select the formula and then enter the amounts to compute the quick ratio for 1. Compute the following ratios for both companies for the current year and decide which company's stock best fits your investment strategy Assume all sales are on credit (Abbreviations used A/R = accounts receivable, Avg average, CS common stock, EBIT eamings before interest and taxes, Mkt market, SE stockholders' equity, and ST short-term) BIR, Inc HP Corp b. Debt ratio a. Quick ratio b. Debt ratio c. Interest coverage ratio d. Accounts receivable turnover Inventory turnover Select the formula and then enter the amounts to compute the debt ratio for e f Total asset turnover g. Return on assets BIR, Inc HP, Corp c. Interest coverage ratio Select the formula and then enter the amounts to compute the interest covera BIR, Inc. HP Com h. Return on equity Earnings per share J. Price-eamings ratio : Print Done
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