P18-78 Assume that you are purchasing shares in a company art supply business Suppose you have narrowed the choice to BFT Trading Lid and Using ratios to decide between two sure Investments Corp. and have assembled the following data: Selected income stateral data for the year ended Deamber 31, 2020: Lin Corp ED Net sales fall on credit) Cost of goods sold Income from operations Interest expense Net income BFI Trading Ltd. $1,060,000 602,000 186,000 40,000 82,000 $1,246,000 722.000 202,000 10.000 124,000 Selected balance short and market price data for the year mide December 31, 2020- BFI Trading Ltd. Lin Corp. Current assets Cash Short-term investments Current receivables, net Inventories Prepaid expenses Total current assets Total assets Total current liabilities Total abilities Preferred shares, 510.00 (200 shares) Common shares (75,000 shares) Common shares (10,000 shares) Total shareholders' equity Market price per common share BFF's preferred dividends are paid each year. $ 134,000 0 312,000 424,000 24,000 894,000 2,070,000 748,000 1.444,000 60,000 $110.000 24.000 392.000 448.000 28,000 1,002,000 2,344.000 800,000 1.508.000 450,000 100,000 626,000 84.00 836,000 55.00 $ $ Selected blence sheet data ant dry 1, 2020 Current receivables.net Inventories Total assets Preferred shareholders equity. 510.00 300 shares) Common shares (75.000 shares) Common shares (10.000 shares) Total shareholders equity BFI Trading Ltd. $ 330,000 448,000 1.970,000 60,000 Lin Corp $ 280,000 470,000 1,720,000 450.000 100,000 560,000 720,000 Your investment strategy is to purchase the shares of companies that have low price camingarbos but appear to be in good shape financially. Assume you have and all other factors and your decision depends on the results of the ratio analyse performed Rewind Compute the following tatos rounded to two decimal places) fored companies for the current year and decide which company's shares better fit your investment strategy 1094 Part 4 Analysis of Accounting Information a. Current ratio b. Acid-test ratio c. Inventory turnover d. Days' sales in inventory e. Accounts receivable turnover f. Days' sales in receivables i. Times-interest-earned ratio j. Return on sales k. Return on assets 1. Return on common shareholders' equity m. Earnings per common share n. Price earnings ratio o. Book value per common share g. Debt ratio h. Debt/equity ratio op 88 Cruz Burgers Inc.'s financial statements for the year ended December 31, 2020, are
