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Seved Po-Yen Devices Inc. and Kejia Computer Ltd. are competing businesses. Selected data from the financial statements for the two companies for the year
Seved Po-Yen Devices Inc. and Kejia Computer Ltd. are competing businesses. Selected data from the financial statements for the two companies for the year ended 31 December 20X2 are shown below. Year ended 31 December 20X2 (in thousands of Canadian dollars) Sales revenue Earnings from continuing operations, net of income tax Net earnings, after income taxes Comprehensive income Current assets Tangible capital assets, net Total assets Current liabilities. Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity Number of common shares outstanding (thousands) Po-Yen Kejia Devices Computer $519,000 $290,000 76,800 24,700 63,500 24,700 69,200 17,200 $249,900 $118,200 384,400 43,300 $634,300 $161,500 $115,200 64,500 345,600 100,000 50,000 73,500 47,000 #634,300 $161,500 300,000 250,000 Required: 1. Compute the following ratios for both companies (for convenience, use 20X2 year-end balance sheet amounts instead of averages): (Round percent answers to 1 decimal place (i.e., .234 should be entered as 23.4). and other answers to 2 decimal places.) Ratio Po-Yen Devices Kejia Computer a. Operating margin 96 % b. Return on assets 96 % c. Return on share equity 96 96 d. Total debt-to-shareholder's equity times times
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