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Hello, Would you be able to help me with this question? Thank you 3: Financial information for Crisco Company and Silas Company, both in the
Hello, Would you be able to help me with this question? Thank you
3: Financial information for Crisco Company and Silas Company, both in the same type of industry, are shown below. Crisco Compahy Company Crisco Company Compahy Data from the current year-end balance sheets Assets Data from the current year's income statement $ 21,000 37,500 Cost of goods sold 291,600 481,000 Interest expense Income tax expense Net income 78,100 71,500 10,000 83,000 Accounts receivable, net. 6,700 34,850 62,700 Merchandise inventory... Prepaid expenses Plant assets, net Total assets 1,100 ic earnings per share 253,300 .$388,100 $466,400 177,900 Beginning-of-year balance sheet data Accounts receivable, net . . _ . . . . 73,200 74,300 Liabilities and Equity Current liabilities $100,500 98,000 Current notes receivable (trade).. 85,650 62,400 ...106,100 150,000 70,000 Total assets. Common stock, $5 par value Retained earnings Total liabilities and equity . . . . . . . 36,000 .$388,100 $466,400 384,400 444,000 50,000 70,000 110,700 51,950 Retained earnings 50,100 lotal liabilities and equity $388, 100 $466,400 ied earnings 50,100 110,700S REQUIRED: 1. For both companies compute the current ratio, acid test ratio, accounts (including notes) receivable turnover, inventory turnover, days' sales in inventory, and days's sales uncollected. Identify the company you consider to be the better short-term credit risk and explain why. 2. For both companies compute the profit margin ratio, total asset turnover, return on total assets and return on common stockholders equity. Assume that each company paid dividends of S1.10 per share and each company's stock can be purchased for $25 per share. Compute the price-earnings ratio and dividendStep by Step Solution
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