The current year financial statements for Blue Water Company and Prime Fish Company are presented below. 1. Complete a schedule that reflects a ratio analysis of each company. (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).)
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other other assets Total assets $ 41,800 42,000 95,000 152,000 84,800 $ 415,600 100 415,000 $ 95,000 70,600 153,600 29,800 66,600 $ 415,600 $ 20,200 33,400 44,800 410,600 313,000 313, $ 822,000 822,000 $ 61,000 520,000 106,800 61,600 72,600 $ 822,000 Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Tocome statement. Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 435,000 (237,000) (162,600) $ 35,400 $ 794,000 (400, 800) (311,800) $ 81,400 $ 22.8 30% 33,800 $ 23 30% $ 152,000 $ 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. Complete a schedule that reflects a ratio analysis of each company. (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).) > Answer is complete but not entirely correct. Ratio BLUE WATER COMPANY PRIME FISH COMPANY 7.94 % % 4.77 X % 7.53 % % 6.41 % % 8.14 X % 10.25 X % Profitability ratios: 1. Return on equity 2. Return on assets 3. Gross profit percentage 4. 4 Net profit margin 5. Earnings per share 6. 6. Quality of income Asset turnover ratios: 4.56 X % 6.63 X % S 1.29 X $ 1.01 X 1.78 X 1.55 X 7. Total asset turnover 1.05 0.97 8. Fixed asset turnover 2.86 OOO 3.45 4.58 1.93 7.92 17.72 X 2.77 X 6.74 X 1.77 X 6.01 X 0.44 0.33 9. Receivable turnover 10. Inventory turnover Liquidity ratios: 11. Current ratio 12. Quick ratio 13. Cash ratio Solvency ratios: 14. Times interest earned ratio 15. Cash coverage ratio 16. Debt/equity ratio Market ratios: 17 Price/earnings ratio 18. Dividend yield ratio 1.08 X 1.25 X 5.01 X 0.28 X 13.21 X 0.09 X 17.65 X 9.65 % 22.71 12.71%
