Required 1. Using the financial statements given, compute the following ratios for both companies for 2024 and 2023. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio b. Inventory turnover C. Accounts receivable turnover d. Gross margin percentage e. Debt ratio f. Return on assets g. Return on common shareholders' equity h. Earnings per share i. Price-earnings ratio j. Dividend yield RECREATIONAL LIFE VESTS Comparative Financial Statements For the Years Ended December 31 2024 2023 2022 5.410.570 $ 383,870 299.110 280,190 111,460 103,680 78,290 70,830 33,170 32,850 2.780 2,980 30,390 29,870 8.780 8,630 $ 21.610 5.215.240 $ 36,460 59,930 PADDLE COMPANY Comparative Financial Statements For the Years Ended December 31 Income Statement 2024 2023 2022 Net sales revenue $430,489 $ 425,410 Cost of goods sold 258,756 256,797 Gross margin 171.733 168,613 Operating expenses 153,880 151,922 Operating income 17,853 16,691 Interest expense 865 788 Income before income tax 16,988 15.903 Income tax expense 5.137 4,809 Net Income $ 11,851 511,094 Balance Sheet Assets Cash and cash equivalents $69.159 $ 70,793 Accounts receivable 44,798 44,452 $ 44,104 Inventory 79,919 66,341 75,363 Other current assets 15,494 16.264 Total current assets 209,370 197,850 Long-term assets 89.834 90,776 Total assets $ 299 204 5.288.626 5 276,482 Liabilities Current liabilities $69.554 $ 60.232 Long-term liabilities 31,682 29.936 Total liabilities 101.236 90.168 Shareholders' Equity Common shares 72.795 80,885 Retained earnings 125.173 117.573 Total shareholders' equity 197,968 198,458 197,668 Total liabilities and shareholder's equity $299,204 $288.626 Other Data Market price per share 5 21.385 33.82 Annual dividend per share 0.32 0.30 Weighted average number of shares outstanding 9.000 8,000 $ 65,730 $ 55,270 39,810 38,650 68,500 65,230 24.450 37,630 198.490 196,780 116.760 116.270 5315 250 $313,050 $310.640 $ 90.810 96.310 187,120 $ 90,010 105,890 195.900 111.530 16.600 128.130 5315250 102.480 14,670 117,150 $31050 103,840 5 46:37 5 0.53 51.64 0.45 9.000 8,000 RECREATIONAL LIFE VESTS Comparative Financial Statements For the Years Ended December 31 2024 2023 2022 $ 410,570 5383,870 299,110 280,190 111,460 103,680 78.290 70,830 33,170 32,850 2.780 2,980 30,390 29,870 8.780 8,630 $ 21,610 5215.240 PADDLE COMPANY Comparative Financial Statements For the Years Ended December 31 Income Statement 2024 2023 2022 Net sales revenue $430,489 $ 425,410 Cost of goods sold 258,756 256,797 Gross margin 171.733 168,613 Operating expenses 153,880 151,922 Operating income 17.853 16,691 Interest expense 865 788 Income before income tax 16,988 15.903 Income tax expense 5,137 4,809 Net income $ 11,851 $ 11,094 Balance Sheet Assets Cash and cash equivalents $ 69,159 $ 70,793 Accounts receivable 44,798 44,452 $ 44,104 Inventory 79,919 66,341 76,363 Other current assets 15,494 16,264 Total current assets 209,370 197,850 Long-term assets 89,834 90,776 Total assets $ 299,204 5 288,626 5 276,482 Liabilities Current liabilities $ 69,554 5 60.232 Long-term liabilities 31,682 29,936 Total liabilities 101,236 90,168 Shareholders' Equity Common shares 72,795 80.885 Retained earnings 125,173 117,573 Total shareholders equity 197,968 198,458 197,668 Total liabilities and shareholder's equity $299,204 $ 288,626 Other Data Market price per share $ 21.385 33.82 Annual dividend per share 0.32 0.30 Weighted average number of shares 9,000 outstanding 8,000 $36.460 59.930 5 65.730 39,810 68,500 24,450 198,490 116,760 $315,250 $ 55,270 38,650 65,230 37.630 196,780 116,270 5.313.050 $310.640 $ 90,810 96,310 187,120 $ 90,010 105,890 195,900 111,530 16,600 128.130 5315.250 102.480 14,670 117,150 $313,050 103,840 $ 46.37 0.53 51.64 0.45 9,000 8.000
