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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 Welcome Home,
Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Welcome Home, Inc., or Brick Town, Corp. You assemble the following selected data:
Selected income statement data for the current year follow:
Welcome Home, Inc. | Brick Town, Corp. | |
---|---|---|
Net Sales | $300,000 | $223,000 |
Cost of Goods Sold | 102,000 | 141,000 |
EBIT | 86,000 | 96,000 |
Interest Expense | 18,000 | 9,000 |
Net Income | 60,000 | 83,000 |
Selected balance sheet and market price data at the end of the current year follow:
Welcome Home, Inc. | Brick Town, Corp. | |
---|---|---|
Current Assets: | ||
Cash | $26,000 | $59,000 |
Short-Term Investments | 33,000 | 44,000 |
Accounts Receivable, Net | 36,000 | 25,000 |
Inventory | 50,000 | 52,000 |
Prepaid Expenses | _____________7,000 | ____________1,000 |
Total Current Assets | 152,000 | 181,000 |
Total Assets | 242,000 | 239,000 |
Total Current Liabilities | 79,000 | 48,000 |
Total Liabilities | 99,000 | 87,000 |
Common Stock, $2.00 Par 6,000 Shares | 12,000 | |
$5.00 Par, 5,000 Shares | 25,000 | |
Total Stockholders |
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