The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net). ok Other assets Total assets t nces Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Blue Water Prime Fish $ 41,000 38,000 $ 21,000 31,000 99,000 140,000 84,000 $ 402,000 $ 99,000 65,000 148,000 29,000 61,000 $ 402,000 $447,000 (241,000) (161,000) $ 45,000 $ 22 30% Other data Per share stock price at end of current Average income tax rate nt year $ 33,000 Dividends declared and paid in current year 40,000 401,000 305,000 $ 798,000 $ 49,000 60,000 512,000 106,000 71,000 $ 798,000 $ 802,000 (400,000) (311,000) $ 91,000 $ 15 30% $ 148,000 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neither company is publicly held. Required: 1. Using year-end balances for all ratios, compute the following ratios: Note: Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34). Profitability ratios: Ratio 1. Return on equity ratio 2. Return on assets ratio 3. Gross profit margin 4. Net profit margin ratio 5. Earnings per share ratio Asset turnover ratios: 6. Total asset turnover ratio 7. Fixed asset turnover ratio 8. Receivable turnover ratio 9. Inventory turnover ratio Liquidity ratios: 10. Current ratio 11. Quick ratio 12. Cash ratio Solvency ratios: 13. Debt to equity ratio Market ratios: 14. Price earnings ratio BLUE WATER COMPANY PRIME FISH COMPANY 7.50 % 15.17 % 7.50 % 15.17 % 46.09 % 50.12% % % 15. Dividend yield ratio % %