x Data Table - X Data Table Selected balance sheet and market price data at end of current year: Selected balance sheet data at beginning of current year: Shop Web Shop Web Current assets: Cash $ $ 23,000 $ 8,000 189,000 218,000 20,000 38,000 14,000 169,000 187,000 17.000 145,000 $ 211,000 853,000 Balance sheet: Current receivables, net Inventories Total assets. Long-term debt Preferred stock, 9%, $100 par Common stock, S1 par (100,000 shares) $5 par (15,000 shares) Total stockholders' equity 195,000 198,000 908,000 300,000 20.000 Short-term investments Current receivables, net Inventories Prepaid expenses Total current assets Total assets Total current liabilities Total liabilities Preferred stock, 9%, $100 par Common stock, $1 par (100,000 shares) $5 par (15,000 shares) Total stockholders' equity Market price per share of common stock 100,000 458,000 983,000 361,000 668,000 425.000 929,000 331,000 700,000 20,000 75,000 221,000 258,000 Print Done 100,000 315,000 8.82 $ 75,000 229,000 53.55 $ Print Done Data Table - X Selected income statement data for the current year: Web Net sales (all on credit). Cost of goods sold Income from operations Interest expense Net income Shop 599,000 $ 453,000 90,000 517,000 382,000 79,000 11,000 40,000 63,000 Print Done 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 used: Avg. = average, Cash* = cash and cash equivalents, Mkt = market, o/s = outstanding, SE = stockholders' equity, and ST = short-term.) a. Quick (acid-test) ratio Select the formula and then enter the amounts to calculate the quick (acid-test) ratios. (Round the ratios two decimal places, X.XX.) + ST investments Cash* 23000 38000 + Quick ratio 0.61 Shop Web + + Current receivables)/ 189000 )4 169000 )4 8000 14000 Current liabilities 361000 331000 0.67 b. Inventory turnover Select the formula and then enter the amounts to calculate the inventory turnover for each company. (Round the ratios to two decimal places, X.XX.) Cost of goods sold 453000 382000 Shop Web 1 Average inventory 214500 192500 Inventory turnover 2.11 1.98 c. Days' sales in average receivables c. Days' sales in average receivables Select the formula and then enter the amounts to calculate days' sales in average receivables for each company. (Use a 365-day year. Round intermediary calculations to the nearest whole number, X. Round your final answers one decimal place, X.X.) = Days' sales in average receivables Shop Web d. Debt ratio decimal form to two decimal places, X.XX.) Select the formula and then enter the amounts to calculate the debt ratio for each company. (Enter the debt ratio i Total liabilities Total assets Debt ratio Shop Web e. Times-interest-earned ratio Select the formula and then enter the amounts to calculate the times-interest-earned ratio for Web. (Round the ratio to one decimal place, X.X.) Times-interest-earned ratio Web e. Times-interest-earned ratio Select the formula and then enter the amounts to calculate the times-interest-earned ratio for Web. (Round the ratio to one decimal place, XX.) = Times-interest-earned ratio Web f. Return on common stockholders' equity Select the formula and then enter the amounts to calculate the return on common stockholders' equity (ROE) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Enter the ROE as a percentage rounded to the neares = ROE Shop ( ) = % Web ) = g. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Round EPS to two decimal places, X.XX.) EPS Shop ( ) Web ( ])/ Choose from any list or enter any number in the input 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 Shop Corporation stock or Web Company stock and have assembled the following data for the two companies. (Click the icon to view the income statement data.) (Click the icon to view data at end of current year.) B (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 factors and that your decision depends on the results of ratio analysis. Read the requirements OTOP Web g. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Round EPS to two decimal places, X.XX.) EPS ( Shop Web )/ )/ )/ h. Price-earnings ratio Select the formula and then enter the amounts calculate the price-earnings (P/E) ratio for each company. (Enter amounts i the formula to two decimal places, X.XX, but then round the P/E ratios to one decimal place, XX, as needed.) P/E ratio Shop Web 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 and x Data Table - X Data Table Selected balance sheet and market price data at end of current year: Selected balance sheet data at beginning of current year: Shop Web Shop Web Current assets: Cash $ $ 23,000 $ 8,000 189,000 218,000 20,000 38,000 14,000 169,000 187,000 17.000 145,000 $ 211,000 853,000 Balance sheet: Current receivables, net Inventories Total assets. Long-term debt Preferred stock, 9%, $100 par Common stock, S1 par (100,000 shares) $5 par (15,000 shares) Total stockholders' equity 195,000 198,000 908,000 300,000 20.000 Short-term investments Current receivables, net Inventories Prepaid expenses Total current assets Total assets Total current liabilities Total liabilities Preferred stock, 9%, $100 par Common stock, $1 par (100,000 shares) $5 par (15,000 shares) Total stockholders' equity Market price per share of common stock 100,000 458,000 983,000 361,000 668,000 425.000 929,000 331,000 700,000 20,000 75,000 221,000 258,000 Print Done 100,000 315,000 8.82 $ 75,000 229,000 53.55 $ Print Done Data Table - X Selected income statement data for the current year: Web Net sales (all on credit). Cost of goods sold Income from operations Interest expense Net income Shop 599,000 $ 453,000 90,000 517,000 382,000 79,000 11,000 40,000 63,000 Print Done 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 used: Avg. = average, Cash* = cash and cash equivalents, Mkt = market, o/s = outstanding, SE = stockholders' equity, and ST = short-term.) a. Quick (acid-test) ratio Select the formula and then enter the amounts to calculate the quick (acid-test) ratios. (Round the ratios two decimal places, X.XX.) + ST investments Cash* 23000 38000 + Quick ratio 0.61 Shop Web + + Current receivables)/ 189000 )4 169000 )4 8000 14000 Current liabilities 361000 331000 0.67 b. Inventory turnover Select the formula and then enter the amounts to calculate the inventory turnover for each company. (Round the ratios to two decimal places, X.XX.) Cost of goods sold 453000 382000 Shop Web 1 Average inventory 214500 192500 Inventory turnover 2.11 1.98 c. Days' sales in average receivables c. Days' sales in average receivables Select the formula and then enter the amounts to calculate days' sales in average receivables for each company. (Use a 365-day year. Round intermediary calculations to the nearest whole number, X. Round your final answers one decimal place, X.X.) = Days' sales in average receivables Shop Web d. Debt ratio decimal form to two decimal places, X.XX.) Select the formula and then enter the amounts to calculate the debt ratio for each company. (Enter the debt ratio i Total liabilities Total assets Debt ratio Shop Web e. Times-interest-earned ratio Select the formula and then enter the amounts to calculate the times-interest-earned ratio for Web. (Round the ratio to one decimal place, X.X.) Times-interest-earned ratio Web e. Times-interest-earned ratio Select the formula and then enter the amounts to calculate the times-interest-earned ratio for Web. (Round the ratio to one decimal place, XX.) = Times-interest-earned ratio Web f. Return on common stockholders' equity Select the formula and then enter the amounts to calculate the return on common stockholders' equity (ROE) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Enter the ROE as a percentage rounded to the neares = ROE Shop ( ) = % Web ) = g. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Round EPS to two decimal places, X.XX.) EPS Shop ( ) Web ( ])/ Choose from any list or enter any number in the input 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 Shop Corporation stock or Web Company stock and have assembled the following data for the two companies. (Click the icon to view the income statement data.) (Click the icon to view data at end of current year.) B (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 factors and that your decision depends on the results of ratio analysis. Read the requirements OTOP Web g. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Round EPS to two decimal places, X.XX.) EPS ( Shop Web )/ )/ )/ h. Price-earnings ratio Select the formula and then enter the amounts calculate the price-earnings (P/E) ratio for each company. (Enter amounts i the formula to two decimal places, X.XX, but then round the P/E ratios to one decimal place, XX, as needed.) P/E ratio Shop Web 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 and