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Given the following financial data for two firms in the computer industry. Balance Sheet ( in thousands ) ABC Company XYZ Company Cash $ 1
Given the following financial data for two firms in the computer industry. Balance Sheet in thousands ABC Company XYZ Company Cash $ $ AR Inventory PlantEquip Total assets Current liab. $ Bonds payable Common stock Retained earnings Total $ $ Income Statement In thousands ABC XYZ Sales $ $ Cost of goods sold Interest expense Income before taxes Net Income Tax rate Other Selected Data Dividends per share $ $ Market Price year end $ $ Computer Industry Averages for x Current ratio to Acidtest quick to Inventory turnover times DebtEquity Dividend Yield ROA ROE Compute the following ratios for each company: current acidtest quick inventory turnover TIE debttoequity ratio ROA and ROE. Using the ratios and the industry data, present conclusions regarding the attractiveness of the two companies?
Given the following financial data for two firms in the computer industry.
Balance Sheet in thousands
ABC Company XYZ Company
Cash $ $
AR
Inventory
PlantEquip
Total assets
Current liab. $
Bonds payable
Common stock
Retained earnings
Total $ $
Income Statement
In thousands
ABC XYZ
Sales $ $
Cost of goods sold
Interest expense
Income before taxes
Net Income
Tax rate
Other Selected Data
Dividends per share $ $
Market Price year end $ $
Computer Industry Averages for x
Current ratio to
Acidtest quick to
Inventory turnover times
DebtEquity
Dividend Yield
ROA
ROE
Compute the following ratios for each company: current acidtest quick inventory turnover TIE debttoequity ratio ROA and ROE. Using the ratios and the industry data, present conclusions regarding the attractiveness of the two companies?
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