U-hop Company stock and have assembled the following data for the two companies Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Point Corporation stock Click the icon to view the income statement data) Click the icon to view data at and of current year) Click the icon to view data at beginning of current year) Data Table Duta Table est of Selected once sheet wat beginning of current year Selected income a nd lowe ver Point hd ST short-term) Point shop Balance sheet Net sales (won credit) ...$ Cost of goods sold 601 000 $ 460,000 30.000 516,000 30.000 00.000 145.000 207.000 350,000 197.000 18000 000 Income from operations Interest expense Current receivabos.net... .... Inventories Total Long terme Preferred stock 5100 Common stock par 100 000 shares) 310,000 20.000 Net income 65.000 100 000 Done 2000 Point Print Done Days' sales in average receives * Data Table Selected balance sheet and market price data at end of current year: Point U-shop lin Current assets: Cash Short-term investments Current receivables, net 23,000 $ 10,000 183,000 209,000 15,000 41,000 12,000 168,000 185,000 13,000 Inventories Prepaid expenses Total current assets Total assets.. Total current liabilities Total liabilities .... Preferred stock, 8%, $100 par ...... Common stock, $1 par (100,000 shares).. $5 par (10,000 shares) Total stockholders' equity ..... Market price per share of common stock .... $ 440,000 984,000 363,000 674,000 419,000 932,000 340,000 695,000 20,000 100,000 310,000 8.45 $ 50,000 237,000 82.28 e ne Print Done markets outstanding S tockholders'uty and ST short-term) Requirement 1. Compute the ratios for both companies for the current year and decide which company's stock better fits your investment strategy Begin by computing the ratios starting with the quick acid test ratio. Abbreviations Avgvrage Cash Cash and cash e vents, a. Quick ( test) ratio Select the formula and then enter the amounts to call the acid-test)rais (Round the ratio to two decimal places, X Point U shop b. Inventory mover Select the formula and then enter the amounts to the inventory tumover for each company (Round the ratios to two decimal places, X.XX.) tory burnover Days in average receive Select the form and then enter the amounts to d ay sales in average receives for each company U 365- year Round w a ry on to the nearest who b o und your fanswers to one decima Ushop Select the formula and then enter the amounts occulate the debt wie for each company t he train de forme dem XXX U shoe camed ratio U-shop Return on common stockho u t 1. Return on common stockholders' equity entora " Enter the ROC as a percentage rounded Select the formal and then enter the amounts to calculate the return on common stockholders' equity (ROE) for each company. Complete all answer to the nearestone-onth percent XXX) Point U-shop g Earrings per share of common stock Select the formula and then enter the amounts to calculate camins per share (EPS) for each company. (Complete balance, arbora . Round EPS to two decimal places Xxx U-shop Price-camins ratio Select the formula and then enter the amounts to calculate the price carmings (P/E) for each company (Enter amounts in the formula to two decimal places Pecamins ratio Select the form and on are the mounts to calculate the price-camings (PE) for each company (Enm ounts in the Point U-shop Which company's ochter your intentar? The common stock som to the investment strategy better its pric i ng is Choose from a list or enter any number in the input folds and then continue to the next to
