vestment. You have narrowed the choice to either Topline Corporation stock or Browse Company (Click the icon to view data at end of current year.) N Data Table - X Selected income statement data for the current year: Topline Browse 608,000 $ Net sales (all on credit) Cost of goods sold. Income from operations 453,000 91,000 515,000 386,000 77,000 10,000 39,000 Interest expense Net income 61,000 Print one an in Data Table X and t yea Selected balance sheet data at beginning of current year: orice- brs Topline Browse Balance sheet: es fo Current receivables, net. Inventories.. (acid 146,000 $ 213,000 849,000 hos Total assets. out 196,000 198,000 905,000 299,000 30,000 culate Long-term debt. Preferred stock, 6%, $150 par Common stock, $1 par (100,000 shares).. $5 par (10,000 shares) Total stockholders' equity ... 100,000 50,000 223,000 264,000 aput fie Print Done Data Table 's Browse 37,000 16,000 162,000 ou id Selected balance sheet and market price data at end of current year: w Topline Current assets: Cash $ 31,000 $ Short-term investments 8,000 Current receivables, net 182,000 Inventories 210,000 11,000 Prepaid expenses Total current assets 442,000 Total assets. 973,000 Total current liabilities 364 000 186,000 7,000 ate 408,000 933,000 341 000 ut fil Print Done e Table year rice Current assets: Cash I$ $ 31,000 $ Short-term investments Current receivables, net Inventories 8,000 182,000 210,000 11,000 37,000 16,000 162,000 186,000 7,000 s foll acid Prepaid expenses Total current assets Total assets. 442,000 973,000 364,000 671,000 late Total current liabilities .. Total liabilities. 408,000 933,000 341,000 713,000 30,000 Preferred stock, 6%, $150 par ut fi Print Done i Requirements - X ea cel fo 1. Compute the following ratios for both companies for the current year, and decide which company's stock better fits your investment strategy. a. Quick (acid-test) ratio b. Inventory turnover c. Days' sales in average receivables d. Debt ratio e. Times-interest-earned ratio f. Return on common stockholders' equity g. Earnings per share of common stock h. Price-earnings ratio id ate Print Done it fields and then continue to the next question. Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Topline Corporation stock or Browse Company sta companies Click the icon to view the income statement data.) (Click the icon to view data at end of current year.) Click the icon to view data at beginning of current year.) Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. Assume that you have analyzed all other fa ratio analysis Read the requirements P/E ratio Topline Browse Which company's stock better fits your investment strategy? The common stock of seems to fit the investment strategy better. Its price-earnings ratio is vand Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search o
