Data Table Data Table Selected income statement data for the current year: Selected balance sheet and market price data at end of current year: Supreme U-shop Supreme U-shop Net sales (all on credit) 597,000 $ 516,000 Current assets: 458,000 390,000 Cash $ 24,000 $ 34,000 Cost of goods sold. Income from operations 87,000 69,000 Short-term investments 2,000 17,000 Interest expense 10,000 Current receivables, net 183,000 Net income 64,000 37,000 Inventories 219,000 13,000 159,000 187,000 6,000 Prepaid expenses Total current assets Data Table 441,000 403,000 927,000 Total assets. 977,000 Total current liabilities 372,000 340,000 Selected balance sheet data at beginning of current year: Total liabilities 670,000 700,000 Supreme U-shop 30,000 Balance sheet: 100,000 Current receivables, net 146,000 $ 193,000 Preferred stock, 7%, $150 par Common stock, $1 par (100,000 shares) $5 par (15,000 shares) Total stockholders' equity ..... Market price per share of common stock .... $ 75,000 Inventories. 213,000 195,000 227,000 307,000 7.68 $ Total assets 852,000 914,000 44.27 299,000 30,000 Print Done Long-term debt Preferred stock, 7%, $150 par Common stock, $1 par (100,000 shares) $5 par (15,000 shares) 100,000 75,000 Total stockholders' equity ................ 262,000 224,000 Begin by computing the ratios, starting with the quick (acid-test) ratio. (Abbreviations used: Avg. = average, Cash* = cash and cash equivalents, Mkt = market, o/s = outstanding, SE = stockholders' equity, and ST = short-term.) a. Quick (acid-test) ratio + Select the formula and then enter the amounts to calculate the quick (acid-test) ratios. (Round the ratios to two decimal places, X.XX.) Cash ST investments + Current receivables Current liabilities = Quick ratio Supreme ( 24,000 2,000 146,000 )/ 372,000 0.46 U-shop 34,000 17,000 193,000 ) 340,000 = 0.72 + + + b. Inventory turnover Select the formula and then enter the amounts to calculate the inventory turnover for each company. (Round the ratios to two decimal places, X.XX.) = Cost of goods sold Average inventory Inventory turnover Supreme 458,000 216,000 2.12 U-shop 390,000 191,000 2.04 c. Days' sales in average receivables Select the formula and then enter the amounts to calculate days' sales in average receivables for each company. (Use a 365-day year. Round intermediary calculations to the nearest whole number, X. Round your final answers to one decimal place, X.X.) Supreme 365 4.09 Days' sales in average receivables 89.2 136.7 U-shop 365 2.67 = Choose from any list or enter any number in the input fields and then continue to the next question. ? d. Debt ratio Select the formula and then enter the amounts to calculate the debt ratio for each company. (Enter the debt ratio in decimal form to two decimal places, X.XX.) Total liabilities Total assets Debt ratio Supreme 670,000 977,000 0.69 U-shop 700,000 1 927,000 0.76 e. Times-interest-earned ratio Select the formula and then enter the amounts to calculate the times-interest-earned ratio for U-shop. (Round the ratio to one decimal place, X.X.) Income from operations Interest expense 10,000 Times-interest-earned ratio 6.9 U-shop 69,000 f. Return on common stockholders' equity Select the formula and then enter the amounts to calculate the return on common stockholders' equity (ROE) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Enter the ROE as a percentage rounded to the nearest one-tenth percent, X.X%.) ( Net income Preferred dividends ROE 64,000 0 )/ Average common equity )/ 284,500 225,500 = Supreme U-shop 22.5 % % 37,000 2.100 17.5 g. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Round EPS to two decimal places, X.XX.) Choose from anvliet or enter any number in the innuit fields and then continue to the neyt question g. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Round EPS to two decimal places, X.XX.) Net income Preferred dividends Common shares o/s 100,000 EPS 0.64 Supreme 64,000 0 U-shop 37,000 2,100 )/ 15,000 = 2.33 h. Price-earnings ratio Select the formula and then enter the amounts to calculate the price-earnings (P/E) ratio for each company. (Enter amounts in the formula to two decimal places, X.XX, but then round the P/E ratios to one decimal place, X.X, as needed.) Market price per share Earnings per share 0.64 P/E ratio 1.6 1 Supreme U-shop 5 2.33 2.1 Which company's stock better fits your investment strategy? The common stock of U-shop Company seems to fit the investment strategy better. Its price-earnings ratio is higher than that of Supreme Corporation, and U-shop Company appears to be in slightly better shape than Supreme Corporation