How do you calculate those using the information below?

1. Calculate the following ratios for which sufficient information is avaialble. (Round all calculations to two decimal places)

1. Net Profit Margin

2. Gross Profit Percentage

3. Fixed Asset Turnover

4. Return on Equity

5. Earnings per share

6. Price Earning Ratio

7. Receivables Turnover

8. Days to collect - inventory turnover and Days to sell

9. current ratio

10. Debt - to - assets

TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. Common stock equals

the par value per share times the number of shares.

How would a ratio analyses look like for this assignment?

2. A venture capitalist is considering buying shares in one of the two companies. Based on the data given, prepare a comparative

written evaluation of the ratio analyses (and any other available informaiton) and conclude with your recommended choice.

TIP: Comment on how accounty differences affect your evaluations, if at all.

Using Ration to Compare Alternative Investment Opprtunities
The financial statement for TCC and DCC are summarized here:
				TCC	DCC
Balance Sheet
Cash				$ 35,000	$ 22,000
Accounts Receivable, Net				40,000	30,000
Inventory				100,000	40,000
Equipment, Net				180,000	300,000
Other Assets				45,000	408,000
Total Assets				$400,000	$800,000
Current Liabilities				$ 100,000	$ 50,000
Note Payable (Long-Term)				60,000	370,000
Total Liabilities				160,000	420,000
Common Stock (Par $10)				150,000	200,000
Additional Pain-in Capital				30,000	110,000
Retained Earnings				60,000	70,000
Total Liabilities and Stockholder's Equity				$400,000	$800,000
Income Statement
Sales Revenue				$ 450,000	$ 810,000
Cost of Goods Sold				245,000	405000
Other Expenses				160,000	315000
Net Income				$45,000	$90,000
Other Data
Estimated value of each share at end of year				$ 18	$ 27
Selected Data from Previous Year
Accounts Receivable, Net				$ 20,000	$ 38,000
Inventory				92,000	45,000
Equipment, Net				180,000	300,000
Notes Payable (Long-Term)				60,000	70,000
Total Stockholders' Equity				231,000	440,000
Important information about both Companies:
The companies are in the same line of business and are direct competitors in a large metropolitan area.
Both have been in business approximately 10 years and each has had steady growth.
Desipite these similarities, the management of each has a different viewpoint in many respects.
DCC is more conservative, and as its president said, "We avoid what we consider to be undue risk."
Both companies use straight-line depreciation, but DCC estimate slightly shorter useful lives than TCC.
No shares were issued in the current year and neither company is publicly held.
DCC has an annual audit by a CPA, but TCC does not.
Assume the end-of-year total assets and net equipment balances approximate the year's average and all sales are on account.
Required:
1. Calculate the following ratios for which sufficient information is avaialble. (Round all calculations to two decimal places)
1. Net Profit Margin
2. Gross Profit Percentage
3. Fixed Asset Turnover
4. Return on Equity
5. Earnings per share
6. Price Earning Ratio
7. Receivables Turnover
8. Days to collect - inventory turnover and Days to sell
9. current ratio
10. Debt - to - assets
TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. Common stock equals
the par value per share times the number of shares.
2. A venture capitalist is considering buying shares in one of the two companies. Based on the data given, prepare a comparative
written evaluation of the ratio analyses (and any other available informaiton) and conclude with your recommended choice.
TIP: Comment on how accounty differences affect your evaluations, if at all.