During the year, Heckle paid a total of $50,000 in dividends. The market price per share of its stock is currently $60. In comparison, Jeckle paid a total of $114,000 in dividends, and the current market price of its stock is $76 per share. Heckle had net cash flows from operations of $271,500 and net capital expenditures of $625,000. Jeckle had net cash flows from operations of $492,500 and net capital expenditures of $1,050,000. Information for prior years is not readily available. Assume that all notes payable are current liabilities and all bonds payable are long term liabilities and that there is no change in inventory.

Prepare an Operating Asset Management Analysis by calculating for each company the :

a) current ratio b) quick ratio c) receivables turnover

d) days sales uncollected e) inventory turnover f) days inventory on hand g) payables turnover h) days payable i) financing period

Prepare a Profitability And Total Asset Management Analysis by calculating for each company the:

a) profit margin b) asset turnover c) return on assets

Prepare a Financial Risk Analysis by calculating for each company the:

a) debt to equity ratio b) return on equity c) investing coverage ratio

Prepare a Liquidity Analysis by calculating for each company the cash flow yield

a) Cash flows to sales b) Cash flows to assets c) Free cash flows

Prepare An Analysis Of Market Strength by calculating for each company the:

a) price/earnings ratio b) dividend yield

6) Once you have completed the first 5 steps, write a 1-2 page analysis of the Heckle and Jeckle corporations. Which one is better off and why? What are their similarities, differences, strengths, weaknesses, etc.? Which one should JD Campbell and Associates invest in and why? Note: This section is another opportunity where you can demonstrate your understanding of what you learned this semester so write as much as you can as long as it pertains to the project

B a la n ce S h e e t D e c e m b er 3 1 2 0 1 3 J e c k le A s s e t s C a s h 80,000 192, 400 M a r k e table s e c u ritie s at c o s t 20 3,400 8 4, 600 A cco unt s R e ce iv a b le N e t 55 2,800 9 8 5, 400 I n v e n t o r y 6 29,8 00 1, 2 5 3, 4, 0 0 pre p aid Ex p e n s e s 5 4,400 1 1 4,000 Pro p erty, plant & E q u i p m e nt, Ne t 2,9 13,600 6,5 5 2,000 I n t a g i ble s and oth e r A s s e t s 55 3,200 1 4 4, 800 T o t a l A 5 s ets 4,9 8 7,2 00 9,3 2 6,6 0 0 Liabilities and stock h o l d e r's Equity A cco u n t s p a y a b l e 3 4 4,000 57 2, 600 150,000 N o te s p a y able 400,000 50, 200 7 3 4 0 0 I n c o m e T a x e s p a y a b l e 2,000,000 B o n d s P a y able 2,000,000 1,000,000 C o m m o n S t o c k, 2 0 p a r 600,000 3,5 68, 600 6,0 9,8 0 0 p a i d n Capital 2 1 1 2 0 0 0 8 3 3,200 R eta i n e d E a r n i n g s T o t a l Lia b tes and stock h old e r's e quity. 4,9 87, 200 9,3 2 6,6 0 0