You are considering investing in either Acme Incorporated or Wheatley International. They have provided you with the balance sheet and income statement for the previous year.

Acme Inc.s current price of one share of stock is $46.25. Earning per share last year was $1.86. Wheatley Internationals current price of one share of stock is $52.00 with earning per share from the previous year of $2.30.

Calculate the various ratios:

1. enter the values for the top and bottom of the fraction

2. enter the result from the division.

Results -- one decimal place

When stated percentage, one decimal place for percentage.

Slyes 19 Luillity I VUILE Acme Incorporated Statement of Income FY 200X REVENUES Net Sales Other income Total revenue $4,090,970 +104,227 $4,195,197 $2,673,129 COST OF GOODS SOLD GROSS PROFIT (GROSS MARGIN) $1,522,068 OPERATING EXPENSES Total Selling Expenses Total General Expenses Total Operating Expenses $333,300 +$306,036 $639,336 NET INCOME BEFORE TAXES 882,732 Income Tax Paid (25%) 220,683 NET INCOME AFTER TAXES $662,049 homework_17_a.doc page 2 Acme Incorporated Balance Sheet December 31, 200X ASSETS Current Assets Cash Marketable Securities Accounts Receivable Notes Receivable Inventories Prepaid expenses Total Current Assets $280,928 514.800 108,694 855.771 218.156 88.237 $2,066,586 Fixed Assets Land Plant and Buildings Equipment Total Fixed Assets $510,000 304,096 218,500 $1,744,701 Other Assets Goodwill, net Total Other Assets $49.930 $49,930 TOTAL ASSETS $3.861.217 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $226,977 Accrued expenses 380,496 Current portion of finance debt_382,579 Total Current Liabilities $990.052 Long-Term Liabilities Notes Payable Bonds Other long-term liabilities Total Long-Term Liabilities $228,772 380,000 29.478 $638,250 $1,628,303 Total Liabilities $389,538 Owner's Equity Common Stock (342,196 shares outstanding) Retained Earnings Total Owner's Equity 1,843,377 $2.232.915 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $3,861.217 homework_17_a.doc page 3 Wheatley International Income Statement REVENUES Net Sales $1,053,000 COST OF GOODS SOLD Beginning Inventory Merchandise Purchased Cost of Goods Available For Sale Less: Ending Inventory Cost of Goods Sold $154,800 +316,800 471,600 -126,600 $345.000 GROSS PROFIT (GROSS MARGIN) $708,000 OPERATING EXPENSES Selling Expenses Salaries Advertising Total Selling Expenses $180,000 90,000 $270,000 $54,000 24,600 General Expenses Insurance Interest Expense Rent Utilities Total General Expenses 13,800 8.400 $100.800 $370.800 Total Operating Expenses NET PROFIT (INCOME) BEFORE TAXES 337,200 Less: Income Tax Expenses (25%) 84,300 NET INCOME (PROFIT) AFTER TAXES $252.900 homework_17_a.doc page 4 Wheatley International Balance Sheet ASSETS Current Assets Cash Accounts Receivable Notes Receivable Inventory Total Current Assets $72,000 120,600 61,200 126,600 $380,400 Fixed Assets Land Buildings Equipment & Vehicles Depreciation Total Fixed Assets $1,500,000 1,050,000 1,066,000 - 400.000 $3,216,000 Other Assets Goodwill Total Other Assets $90,000 $90,000 TOTAL ASSETS $3.686.400 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $45,000 Short-Term Notes Payable 15,600 Total Current Liabilities $60,600 Long-Term Liabilities Notes Payable (Long-Term) Bonds Total Long-Term Liabilities $210,000 60.000 $270,000 Total Liabilities 330,600 Owner's Equity Common Stock $1.896,000 (120,429 shares outstanding) Retained Earnings 1,459,800 Total Owner's Equity $3,355,800 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $3,686,400 homework_17_a.doc page 5