th Requirements - OS stmel rtin equin qui the 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 c. Days' sales in average receivables d. Debt ratio e. Times-interest-earned ratio f. Return on common stockholders' equity g. Earnings per share of common stock h. Price-earnings ratio X.) Data Table kor E in will Selected balance sheet and market price data at end of current year: ta em ds ave ar Supreme Express Current assets: Cash 37,000 erd 12.000 Int stra Short-term investments Current receivables, net Inventories 24,000 $ 8,000 189,000 208,000 19,000 valent ers' 159,000 182,000 16.000 Prepaid expenses Total current assets ent Total assets 448,000 981,000 364,000 669,000 406,000 929.000 332,000 693.000 35,000 Total current liabilities Total liabilities Preferred stock, 9%, $175 par. Common stock, $1 par (100,000 shares)... $5 par (15,000 shares) Total stockholders' equity Market price per share of common stock 100,000 ent aces, 75,000 236,000 ode . 312,000 000 $ 8.54 $ 38.42 cera Print Done 11 O 17 6 A ... Ps Lr Data Table hav Selected balance sheet data at beginning of current year: Supreme Express hent Balance sheet: uivale Current receivables, net ..... 193,000 Inventories.. 148,000 $ 212,000 852,000 198,000 Total assets. 910,000 311,000 35.000 Long-term debt... Preferred stock, 9%, $175 par Common stock, $1 par (100,000 shares)... $5 par (15,000 shares) Total stockholders' equity .... . 100,000 75,000 259,000 221,000 places Print Done anies that have low.price-earnings ratios but appear to be in good shane financially. Assume that vou T i Data Table Selected income statement data for the current year: Express $ Net sales (all on credit) Cost of goods sold. Income from operations Supreme 596,000 $ 449,000 90,000 514,000 385,000 ---- 77,000 Interest expense. 11,000 Net income 61,000 37,000 Print Done p Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Supreme Corporation stock or Express 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 the 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 better 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, als = outstanding, SE stockholders' equity, 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.) Cash ST Investments Current receivables Current liabilities Supreme Express Quick ratio + b. Inventory turnover Select the formula and then enter the amounts to calculate the inventory turnover for each company (Round the ratios to two decimal places, XXX.) Cost of goods sold Average inventory Inventory tumover Supreme 449,000 1 385 nnn + Choose from any list or enter any number in the input fields and then continue to the next question Save for Later 16 pts possib Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Supreme Corporation stock or Express 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 the 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 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 year. Round intermediary calculations to the nearest whole number, X. Round your final answers to one decimal place, XX) Days in average receivables Supreme Express d. Debt ratio Select the formula and then enter the amounts to calculate the debt ratio for each company (Enter the debt ratio in decimal form to two decimal places, XXX) Total liabilities / Total assets 7 bob ratio Supreme Express e. Times-interest-earned ratio Colore the formida and than antar the amount in relate the time internetaamast rolin e Evroee end the ratio in Ana Hanimal nace v Choose from any list or enter any number in the input fields and then continue to the next question Save for Later 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 the 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 entora u Round LPS TO TWO Gecima piacos, X.M.) EPS ( Supreme Express h. Price-eamings ratio Select the formula and then enter the amounts to calculate the price-earnings (P/E) ratio for each company. (Enter amounts in the formula to two decimal places, XX but then round the P/E ratios to one decimal place. X.X, as needed.) PIE ratio higher than that of Express Company Supreme higher than that of Supreme Corporation Express lower than that of Express Company lower than that of Supreme Corporation Which company's stock better fits your investment strategy The common stock of seems to fit the investment strategy better. Its price earnings ratio is and Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later Which company's stock better fits your investment strategy? The common stock of seems to fit the investment strategy better. Its price-earnings ratio is 7 and xt question. Express Company appears to be in slightly better shape than Supreme Corporation Supreme Corporation appears to be in slightly better shape than Express Company