Question
Comparative financial statement data for Bridgeport Corp. and Sarasota Corp., two competitors, appear below. All balance sheet data are as of December 31, 2022. Bridgeport
Comparative financial statement data for Bridgeport Corp. and Sarasota Corp., two competitors, appear below. All balance sheet data are as of December 31, 2022.
Bridgeport Corp. | Sarasota Corp. | |||
---|---|---|---|---|
2022 | 2022 | |||
Net sales | $2,340,000 | $806,000 | ||
Cost of goods sold | 1,527,500 | 442,000 | ||
Operating expenses | 367,900 | 127,400 | ||
Interest expense | 11,700 | 4,800 | ||
Income tax expense | 110,500 | 46,800 | ||
Current assets | 431,000 | 197,100 | ||
Plant assets (net) | 690,000 | 175,900 | ||
Current liabilities | 86,200 | 43,800 | ||
Long-term liabilities | 138,000 | 45,720 | ||
Net cash common by operating activities | 179,400 | 46,800 | ||
Capital expenditures | 117,000 | 26,000 | ||
Dividends paid on common stock | 46,800 | 19,500 | ||
Weighted-average common shares outstanding | 80,000 | 50,000 |
a) Compute the net income and earnings per share for each company for 2022. (Round Earnings per share to 2 decimal places, e.g. $2.78.)
Net Income | Earnings per share | |||
---|---|---|---|---|
Bridgeport Corp. | $enter a dollar amount for net income for Bridgeport Corp. | $enter a dollar amount for earnings per share for Bridgeport Corp. rounded to 2 decimal places | ||
Sarasota Corp. | $enter a dollar amount for net income for Sarasota Corp. | $enter a dollar amount for earnings per share for Sarasota Corp. rounded to 2 decimal places |
(b) Compute working capital and the current ratio for each company for 2022. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.)
Working Capital | Current Ratio | ||||
---|---|---|---|---|---|
Bridgeport Corp. | $enter a dollar amount for working capital for Bridgeport Corp. | enter the current ratio for Bridgeport Corp. rounded to 1 decimal place | :1 | ||
Sarasota Corp. | $enter a dollar amount for working capital for Sarasota Corp. | enter the current ratio for Sarasota Corp. rounded to 1 decimal place | :1 |
(c) Compute the debt to assets ratio and the free cash flow for each company for 2022. (Round debt to assets to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Debt to Assets | Free Cash Flow | |||
---|---|---|---|---|
Bridgeport Corp. | enter the debt to assets ratio for Bridgeport Corp. in percentages rounded to 1 decimal place % | $enter a dollar amount for free cash flow for Bridgeport Corp. | ||
Sarasota Corp. | enter the debt to assets ratio Sarasota Corp. in percentages rounded to 1 decimal place % | $enter a dollar amount for free cash flow for Sarasota Corp. |
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