Question
Below you will find the condensed finacial statements for Koko Inc. and Suz Inc. for 2022. Intructions 1. Compute the following ratios for each company.
Below you will find the condensed finacial statements for Koko Inc. and Suz Inc. for 2022. Intructions 1. Compute the following ratios for each company. a. Rate of return on net sales b. Rate of return on total assets at year-end c. Rate of return on stockholder's equity at year-end d. Earnings per share of common stock e. Ratio of Stockholder's equity to total equities f. Current ratio g. Asset turnover h. Boook value per share of common stock 2. Comment on any similarities or differences in two companies ratios. 3. From investor's point of view, is one company more at risk than the other? 4. Would you grant a five -year loan to either company? Explain.
Income Statements Year Ended December 31, 2022 Balance Sheets December 31, 2022 Analyze: Assume that Suz Inc. believes that it can cut the cost of goods sold by 5 percent in 2023 while keeping net sales and operating expenses at 2022 levels. If the company met this goal, discuss the potential implications to the rate of return on sales and earnings per share. Assume a tax rate of 25 percent
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