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) Other assets Total assets 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 Other data Per share stock price at end of current year Average income tax rate: Dividends declared and paid in current year Blue Water Prime Fish $ 20,400 $ 41,600 41,000 96,000 149,000 84,600 $ 412,200 $ 96,000 69,200 152,200 29,600 65,200 $ 412,200 $ 438,000 (238,000) (162,200) 32,800 43,600 408,200 311,000 $ 816,000 $ 58,000 61,200 518,000 106,600 72,200 $ 816,000 $ 796,000 (400,600) (311,600) $83,800 $ 37,800 $ 22.6 30% $ 33,600 $ 21 30% $151,000 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: Ratio BLUE WATER COMPANY PRIME FISH COMPANY Profitability ratios: 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 % % % % % % % % do do do do 15. Dividend yield ratio % %