from question i. how does it get 14.82%
te the financial statements. Start with the income statement. Thens nent. Complete the balance sheet last. $ Complete the flow statement (m) 10,850 $26.950 catement. Then go to slem 18-7P that you are purchasin are purchasing shares in a company in the variety store and gas a that I suppose you have narrowed the choice to BEI Trading Ltd. and Lin Corp. business. Sup sembled the following data: ve assemb] atement data for the year ended December 31, 2017: Excel Spread Template Using ratios to two share inves income state and gas bar d. and Lin Corp. BFI Trading Ltd. $1,060,000 602,000 atsales (all on credit) List of goods sold ome from operations Herest expense Net income 186,000 40,000 82,000 Lin Corp. $1,246,000 722,000 202,000 10,000 124,000 Chapter 18 Financial State on comm log Y STO ( ) 3 e madhe me DEGX Ep alve YMS RCL SY 7 8 9 CSXnProx 4 5 in M- M ME DATA CD how muc 1 ) CHEC SONT for each Common 2017 at the Lin Corp. Se a rs Br Trading Lid. Current $136.000 $110,000 24,000 392,000 448.000 25.000 1,002,000 2,344,000 800,000 1,508,000 Short-term investments Current receivables.net Inventories Prepaid expenses Total current assets Total assets Total current liabilities Total abilities Preferred shares 10.00 (300 shares) Common shares (75,000 shares) Common shares (10,000 shares) Total shareholders' equity Market price per common share 24000 20.000 994.000 2.070,000 745.000 1444.000 FEE 450,000 100,000 26,000 836,00 SSD Selected balance sheet data at mary 1, 2017: BFI Trading Ltd $ 330.000 448.000 1.970,000 60,000 Lin Corp. $ 280,000 470,000 1,720,000 Current receivables, net Inventories Total assets Preferred shareholders' equity, $10.00 (300 shares) Common shares (75,000 shares) Common shares (10,000 shares) Total shareholders' equity 450,000 100,000 (560,000 720,000 Your investment strategy is to purchase the shares of companies that have low price earnings ratios but appear to be in good shape financially. Assume you have analyzed all other factors, and your decision depends on the results of the ratio analysis to be performed. Required Compute the following ratios for both companies for the current year and decide which company's shares better fit your investment strategy: a. Current ratio b. Acid-test ratio c Inventory turnover d. Days' sales in receivables V e. Debt ratio V f. Times-interest-eamed ratio & Return on net sales h. Return on total assets i Return on common shareholders' equity Earnings per common stre k. Book value per common share L Price-earnings ratio --- Sa w ou performed. BFI 7.74 % Lin 9.95 % Return on net sales: h. Compute the return on total assets for both companies. (Round your answers to two decimal places.) BFI 6.04 % Lin 6.59 % Return on total assets: i. Compute the return on common shareholders' equity for both companies. (Round your answers to two decim BFI Lin 15.94 % Return on common shareholders' equity: 14.82 % 1. Compute the earnings per share for both companies. (Round your answers to two decimal places.) BF1 Lin 7.90'S 1.65 Earninas per share: This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. All parts showing
