Question
Common-size analysis and differences in profitability and leverage) Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in
Common-size analysis and differences in profitability and leverage) Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands):
Cool Brewery Ltd. | Northern Beer Ltd. | |||||||
---|---|---|---|---|---|---|---|---|
2020 | 2019 | 2020 | 2019 | |||||
Net sales | $214,040 | $40,450 | ||||||
Cost of goods sold | 100,850 | 16,600 | ||||||
Operating expenses | 81,360 | 14,570 | ||||||
Interest expense | 7,890 | 390 | ||||||
Income tax expense | 4,620 | 1,090 | ||||||
Cash | 11,690 | $9,490 | 4,670 | $2,680 | ||||
Other current assets | 77,820 | 83,860 | 8,500 | 6,950 | ||||
Long-term assets (net) | 191,930 | 193,340 | 30,610 | 30,120 | ||||
Current liabilities | 75,220 | 59,230 | 3,920 | 4,280 | ||||
Long-term liabilities | 99,310 | 114,940 | 7,240 | 7,050 | ||||
Share capital | 52,600 | 44,900 | 17,800 | 15,000 | ||||
Retained earnings | 54,310 | 67,620 | 14,820 | 13,420 |
Prepare a common-size analysis for 2020 for Cool Brewery Ltd. and Northern Beer Ltd. (Round percentage answers to 1 decimal place, e.g. 15.1%.)
Cool Brewery | Northern Beer | |||||||
---|---|---|---|---|---|---|---|---|
Select an item. Cost of goods soldIncome tax expenseInterest expenseNet earningsNet salesOperating expenses | $Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | $Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | ||||
Select an item. Cost of goods soldIncome tax expenseInterest expenseNet earningsNet salesOperating expenses | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | ||||
Select an item. Cost of goods soldIncome tax expenseInterest expenseNet earningsNet salesOperating expenses | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | ||||
Select an item. Cost of goods soldIncome tax expenseInterest expenseNet earningsNet salesOperating expenses | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | ||||
Select an item. Cost of goods soldIncome tax expenseInterest expenseNet earningsNet salesOperating expenses | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | Enter a dollar amount. | Enter percentages rounded to 1 decimal place. % | ||||
Select a closing name. Cost of goods soldIncome tax expenseInterest expenseNet earningsNet salesOperating expenses | $Enter a total amount. | Enter percentages rounded to 1 decimal place. % | $Enter a total amount. | Enter percentages rounded to 1 decimal place. % |
eTextbook and Media
Calculate the return on assets and the return on shareholders equity for both companies. (Round answers to 1 decimal place, e.g. 15.1%.)
Cool Brewery | Northern Beer | |||
---|---|---|---|---|
Return on assets | Enter percentages rounded to 1 decimal place. % | Enter percentages rounded to 1 decimal place. % | ||
Return on shareholders equity | Enter percentages rounded to 1 decimal place. % | Enter percentages rounded to 1 decimal place. % |
eTextbook and Media
Calculate the debt to equity ratio for both companies at the end of 2020. (Round answers to 2 decimal places, e.g. 0.84.)
Cool Brewery | Northern Beer | |||
---|---|---|---|---|
Debt to equity ratio | Enter debt to equity ratio rounded to 2 decimal places. | Enter debt to equity ratio rounded to 2 decimal places. |
eTextbook and Media
Calculate the net debt as a percentage of total capitalization for both companies. (Round answers to 1 decimal place, e.g. 15.1%.)
Cool Brewery | Northern Beer | |||
---|---|---|---|---|
Net debt as a percentage of total capitalization | Enter percentages rounded to 1 decimal place. % | Enter percentages rounded to 1 decimal place. % |
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