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The current year financial statements for two competitors are presented below. Please analyze their financials. Note: if a ratio cannot be solved given the data
The current year financial statements for two competitors are presented below. Please analyze their financials.
Note: if a ratio cannot be solved given the data provided, please leave it blank. There are a few ratios that cannot be solved given the information provided.
Balance sheet:
Cash
Accounts receivable net
Inventory
Property & equipment net
Other assets
Total assets
Current liabilities
Longterm debt interest rate:
Capital stock $ par value
Additional paidin capital
Retained earnings
Total liabilities and stockholders' equity
Income statement:
Sales revenue 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
Both companies are in the fish catching and manufacturing business. Both have been in business approximately 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:
Complete a schedule that reflects a ratio analysis of each company. Round your intermediate calculations and final answers to decimal places. Enter percentage answers rounded to decimal places ie should be entered as
tableRatiotableBLUE WATERCOMPANYtablePRIME FISHCOMPANYProfitability ratios:,,,,Return on equity,,
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