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please make sure you work is readable and i cam see the work to check my work! thank you in advance! Requirement = 1. Compute
please make sure you work is readable and i cam see the work to check my work! thank you in advance!
Requirement = 1. Compute the following ratios for both companies for the current year and decide which company's stock best fits your investment strategy. Assume all sales are on credit. (Abbreviations used: A/R = accounts receivable, Avg = average, CS = common stock, EBIT = earnings before interest and taxes, Mkt = market, SE = stockholders' equity, and ST = short-term.) a. Quick ratio b. Debt ratio c. Interest coverage ratio d. Accounts receivable turnover Inventory turnover f. Total asset turnover g. Return on assets h. Return on equity i. Earnings per share j. Price-earnings ratio e. Data table Selected income statement data for the current year: Brick Town, Corp. Remodel It, Inc. 995,000 $ $ 1,018,000 Net sales Cost of goods sold EBIT 672,000 712,000 159,000 10,000 155,000 18,000 43,000 Interest expense Net income 60,000 Print Done Data table Selected balance sheet and market price data at the end of the current year: Remodel It, Inc. Brick Town, Corp Current assets: S --- Cash Short-term investments Accounts receivables, net Inventory 25,000 11,000 56,000 50,000 2,000 13,000 18,000 50,000 54,000 500 Prepaid expenses Total current assets 135,500 Total assets 144,000 261,000 59,000 259,000 27,000 86,000 2,000 95,000 Total current liabilities. Total liabilities Common stock, $1.00 par, 2,000 shares $5.00 par, 2,000 shares Total stockholders' equity.. Market price per share of common stock 10,000 166,000 173,000 40 $ 48 1 Data table Selected balance sheet data at the beginning of the current year: Remodel It, Inc. S $ Accounts receivable, net Inventory 59,500 64,000 251,000 Brick Town, Corp. 44,500 52,000 211,000 2,000 Total assets Common stock, $1.00 par, 2,000 shares $5.00 par, 2,000 shares Total stockholders' equity 10,000 123,000 162,000 More info Your investment strategy is to purchase the stock of the company that has a low price-earnings ratio but seems to be in good shape financially. Assume that you analyzed all other factors and your decision depends on the results of the ratio analysis to be performed. . Ouck The forms and then enter the amounts to come the quick ratio for each company the decimal XXX Il me Top . 01 31 b. Det the forma and the enter the amounts to come out ratio for each company. Round the percentage founded to the return percent XXX) Debo Aline ET Corp inverno Select the formule and then the amounts to compute the interest Coverage for each company Cound them to two decine retrato ne times BT Corp d. Accounts receivable turnover Select the formula and then enter the amounts to compute the accounts receivable turnover ratio for each company. (Round the toto two decimal place) Accounts receivable Bannover Rinc times BT Corp 1 mes e. Inventory tumover Select the formula and then enter the amounts to compute the inventory tumover for each company (Round the ratios to two decimal places) Inventory turnover Biloc smes BT Corp times Total semover Select the formula and then enter the amounts to compote the total asset tumover for each company Round the ratio to two decimal places) To over RI. Inc BT Corp mes time Rotum on assets Select the formule and then enter the amounts to compute the return on assets for each company (Round the ratios as percentages rounded to the poorest hundredth percent. XXX%) Return on assets RI, Inc . Corp. % h. Return on equity Select the formula and then enter the amounts to compute the return on equity for each company. (Round the ratios as percentages founded to the nearest hundredth percent, XXX%) 1 Return on equity RI, Inc BT Corp. 1 1 1. Earnings per share Select the formulo and then enter the amounts to compute camings per share (EPS) for each company (Round EPS to two decimal places) Earnings per share RI, Inc. BT. Corp. 1. Earnings per share Select the formula and then enter the amounts to compute earnings per share (EPS) for each company (Round EPS to two decimal places) Eamings per share Rling, BT Corp Price-earnings ratio Select the formula and then enter the amounts to compute the price camingo (PE) ratio for each company. (Round the PE ratio to two decimal places) Price-camnings ratio RIInc BT, Corp. Which company's stock best fits your investment strategy? The and common stock seems to best fit the investment strategy. Its price-earnings ratio is based on the results of the ratio analysis performed Step by Step Solution
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