Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

everything is correct except for the blank spaces, thanks! The current year financial statements for Blue Water Company and Prime Fish Company are presented below

image text in transcribedimage text in transcribed

everything is correct except for the blank spaces, thanks!

The current year financial statements for Blue Water Company and Prime Fish Company are presented below Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 41,300 39,500 97,500 144,500 84,300 $ 407,100 $ 97,500 67,100 150,100 29.300 63,100 S 20,700 31,900 41,800 404,600 308,000 S 807.000 S 53,500 60,600 515,000 106,300 71,600 S 407 100S 807.000 $ 442,500 S 799,000 (400,300) (311.300) (239,500) $ 41,400 S 22.3 (161.600) 18 45% 45% s 33,300 149,500 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neith er company is publicly held Both companies are in the fish catching and manufacturing business. Both have been in businsss approximataly 10 years, and each has had steady growth. The managsment of each has a diffierent viswpoint in many respects. Blue Water is more consarvative consider lo be undue risk "Neither comparny is publicly held Required: 1. Complete a schedule that relects a ratio analysis of each company (Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places0.1234 should be entered as 12.34).) COMPANY COMPANY Profitabiity ratios Return on equt Return on assets Financial leverage percentage 12 61 % 4Nepofit margi 5 Earnings per share urnoer ratios Tolal asset turrovr 7.Fixed assel tunwe 8 Receivable turnaver 1 09 3 06 5 80 2.48 0.90 nventery tunover 958 Liquidity rabos Quick ratio 2. Cash rato Solvency ratios 13. Deatequity ratio Market ratios 14 Prceearnings rabo 5 Dividend yield ratio 0.42 0.38 16 12 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Private And Public Choice

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

17th Edition

0357133994, 9780357133996

More Books

Students also viewed these Accounting questions

Question

What level of candor do decision makers require?

Answered: 1 week ago