P12-41B (similar to) HARD SUB1, 14.00 of la pis Question Help Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Construct It, Inc., or Strong Home Corp. You assemble the folowing data (Click the icon to view the income statement data.) (Click the icon to view data at end of cument year) Click the icon to view data at beginning of cument year) (Click the loon to view more information.) Data Table Selected income statement data for the current year Net sales Cost of goods sold Data Table Selected balance sheet data at the beginning of the current year 20 Construct it, Inc. Strong Home, Corp Construct It, Inc. Strong Home, Corp. Accounts receivable, net $ 37,000 25,000 329,000 $ 350,000 Inventory 90,000 81,000 100 140,000 170,000 Total asses 252.000 202.000 63,000 86.000 Common stock $2.00 par, 3,000 shares.... 8,000 18,000 8,000 $2.50 par, 0.000 15.000 140 150.000 170.000 Total stockholders' equity 124.000 183.000 EBIT Net income Print Done Print Done 101 Cl Data Table Selected balance sheet and market price data at the end of the current year: Construct It, Inc. Strong Home, Corp. co Current assets: Cash 24,000 14,000 Short-term investments 27,000 39,000 Accounts receivables, net 36,000 31,000 Inventory 69,000 84,000 Prepaid expenses 2,000 500 Total current assets 158,000 168,500 Total assets 298,000 297,000 Total current liabilities 200,000 168,000 Total liabilities 95,000 82,000 Common stock, $2.00 par, 3,000 shares 6,000 $2.50 par, 6,000 shares 15,000 Total stockholders' equity 203,000 215,000 Market price per share of common stock 65 81 the Print Done Clear All ar Current year.) ULA 18on to view data at end of current year.) (Click the icon to vie (Click the icon to view more information.) Read the requirement. b. Debt ratio Select the formula and then enter the amounts to compute the debt ratio for each company. (Round the ratios as percentages rounded to the m percent, XXX%.) Total liabilities Cl, Inc. SH, Corp. 95,000 82,000 c. Interest coverage ratio Total assets 298,000 297,000 Debt ratio 31.88 27.61 Select the formula and then enter the amounts to compute the interest coverage ratio for each company. (Round the ratios to two decimal places. Interest coverage ratio times Cl, Inc. SH, Corp. Choose from any list or enter any number in the input fields and then click Check Answer. times