Question
The current year financial statements for XDF Company and TBH Company are presented below. XDF TBH Balance sheet: Cash $ 42,700 $ 19,300 Accounts receivable
The current year financial statements for XDF Company and TBH Company are presented below.
| XDF |
| TBH | ||||
Balance sheet: |
|
|
|
|
|
|
|
Cash | $ | 42,700 |
|
| $ | 19,300 |
|
Accounts receivable (net) |
| 46,500 |
|
|
| 36,100 |
|
Inventory |
| 90,500 |
|
|
| 50,200 |
|
Property & equipment (net) |
| 165,500 |
|
|
| 421,400 |
|
Other assets |
| 85,700 |
|
|
| 322,000 |
|
Total assets | $ | 430,900 |
|
| $ | 849,000 |
|
Current liabilities | $ | 90,500 |
|
| $ | 74,500 |
|
Long-term debt (interest rate: 15%) |
| 76,900 |
|
|
| 63,400 |
|
Capital stock ($10 par value) |
| 159,900 |
|
|
| 529,000 |
|
Additional paid-in capital |
| 30,700 |
|
|
| 107,700 |
|
Retained earnings |
| 72,900 |
|
|
| 74,400 |
|
Total liabilities and stockholders equity | $ | 430,900 |
|
| $ | 849,000 |
|
Income statement: |
|
|
|
|
|
|
|
Sales revenue (1/2 on credit) | $ | 421,500 |
|
| $ | 785,000 |
|
Cost of goods sold |
| (232,500 | ) |
|
| (401,700 | ) |
Operating expenses |
| (164,400 | ) |
|
| (312,700 | ) |
Net income | $ | 24,600 |
|
| $ | 70,600 |
|
Other data: |
|
|
|
|
|
|
|
Per share stock price at end of current year | $ | 23.7 |
|
| $ | 32 |
|
Average income tax rate |
| 45 | % |
|
| 45 | % |
Dividends declared and paid in current year | $ | 34,700 |
|
| $ | 156,500 |
|
|
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).)
Ratio | XDF | TBH |
Profitability ratio |
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Return equity |
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Return on assets |
|
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Financial leverage percentage |
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Net profit Margin |
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Earning per share |
|
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Turnover Ratio |
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Total assets Turnover |
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Fixed assets turnover |
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Receivable turnover |
|
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Inventory turnover |
|
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Liquidity Ratio |
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Current ratio |
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Quick ratio |
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Cash ratio |
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Solvency Ratio |
|
|
Debit/Equity Ratio |
|
|
Market Ratio |
|
|
Price earning ratio |
|
|
Dividend yield ratio |
|
|
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