added income statement. please let me know if more is needed
Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Advantage Corporation stock or Internet Company stock and have assembled the following data for the two companies Click the icon to view the income statement data) Click the icon to view data at end of current year) Click tho icon to view data at beginning of current year.) Your strategy is to invest in companies that have low price earnings ratios but appear to be in good shape financially Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis Read the requirements Requirement 1. Compute the ratios for both companies for the current year and decide which company's stock botter fits your investment strategy Begin by computing the ratios, starting with the quick (acid-test) ratio (Abbreviations used Avg. = average, Cash" = cash and cash equivalents, Mkt = market, ofs = outstanding, SE = stockholders' equily, and ST -short-term) a. Quick (acid test) ratio Select the formula and then enter the amounts to calculate the quick (acid-test) ratios (Round the ratios to two decimal places, XXX) ? Choose from any list or enter any number in the input fields and then continue to the next question O H e a OO Data Table i Data Table Selected balance sheet data at beginning of current year Selected balance sheet and market price data atond of current year Advantage Internet Advantage Internet Current assets $ 192.000 $ 144 000 $ 204000 850,000 Cash Short term investments Current receivables, net Inventories 20 000 $ 7,000 187.000 219.000 13.000 41 000 12.000 166000 184.000 6.000 Balance sheet: Current receivables, net Inventones Total assets Long term debi Preferred stock 7%, $175 par Common stock $1 par (100,000 shares) 5 par (10,000 shares) 195.000 912.000 311,000 35,000 100,000 Prepaid expenses Total current assets Total assets 452.000 975 000 409,000 929,000 50 000 Print Done Print Done a 8 o i "bet se 5 6 7. 8 9 - Data Table Data Table Inventories 219,000 13 000 184000 6.000 Advantage Internet 409 000 452 000 975.000 372.000 668.000 Prepard expenses Total current assots Total assets Total current liabilities Total liabilities Preferred stock, 7%, $175 par Common stock, 51 por (100.000 shares) 55 par 10.000 shares) Total stockholders' equity Market price per share of common stock 929000 342 000 687 000 35,000 144,000 $ 204.000 850,000 Balance sheet: Current receivables, net Inventores Total assets Long-term debt Preferred stock, 7%, $175 par Common stock, St par (100 000 shares) $5 par (10,000 shares) Total stockholders equity 192.000 195.000 912,000 311,000 35.000 100 000 100,000 307,000 7045 50.000 242.000 714 50.000 220 000 262.000 $ Print Done Print Done O e E a 8 5/2 5 6 7. 00 9 O 11 11 ng stock as an investment. You have narrowed the choice to either Advantage Corneration stock or Internet Company stock and cement data.) * Requirements ng of current year.) at have low price-ear er factors and th 1. Compute the following ratios for both companies for the current year, and decide which company's stock better fits your investment strategy a. Quick (acid-test) ratio b. Inventory turnover both companies for the c. Days' sales in average receivables with the quick (acid-tes d. Debt ratio pt, o/s = outstandi e. Times-interest-earned ratio f. Return on common stockholders' equity g. Earnings per share of common stock amounts to calculate the h. Price-earnings ratio Print Done umber in the input field a g 8 11 a. QUICK (Bio-est) TUO Select the formula and then enter the amounts to calculate the quick (acid-test) ratios (Round the ratios to two decimal places, XXX) + Quick ratio Advantage Internet b. Inventory turnover Catherman than nntartha mundet te the insiderarhem Dand the rate in the distan Choose from any list or enter any number in the input fields and then continue to the next question. o a 1 % & 5 6 7 I ll - DO have did the results of ratio analysis Read the requirements Select the formula and then enter the amounts to calculate the inventory turnover for each company. (Round the ratios to two decimal places, XXX Inventory turnover Advantage Internet c. Days' sales in average receivables Select the formula and then enter the amounts to calculate days' sales in average receivables for each company. (Use a 365 day yoar Round intermed X Round your final answers to one decimal place, XX) Choose from any list or enter any number in the input fields and then continue to the next question O BI a 8 2 % & 5 6 7 8 9 O archasi Intern - X A Data Table me sta beginn anies th nalyzed Selected income statement data for the current year S tios for Advantage 601,000 $ 449,000 88,000 Net sales (all on credit) Cost of goods sold Income from operations ategy Internet 517,000 384,000 70,000 16,000 40,000 tarting wi is, Mkt = Interest expense Net income 64,000 ter the am Print Done rany number oot UOTETTUIG TUTTGTTGA TORT e
