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You have obtained the financial statements of Wildhorse Manufacturing and Blossom Production, two companies in the manufacturing industry. You have acquired the following information for
You have obtained the financial statements of Wildhorse Manufacturing and Blossom Production, two companies in the manufacturing industry. You have acquired the following information for an analysis of the companies (amounts in thousands): Wildhorse Manufacturing Blossom Production 2024 2023 2024 2023 Cash $25 $21 $37 $37 Accounts receivable 250 204 272 208 Inventory 193 135 139 113 Prepaid expenses 7 6 5 7 Capital assets (net) 468 432 348 233 Current liabilities 159 181 183 132 Long-term debt 270 281 280 227 Share capital-common shares 151 151 115 115 Retained earnings 363 185 223 124 Sales (all credit sales) 2,521 1,775 1,761 1,679 Cost of goods sold 1,650 1,177 1,186 1,255 Interest expense Taxes (30%) Net income 29 30 27 24 113 75 85 73 264 175 198 170 (a) Calculate the following ratios for the two companies for the two years. For 2023, assume the current year amount is equal to the average where required. (Round answers to 1 decimal place, e.g. 14.8 or 14.8%.) i. Current ratio ii. Accounts receivable turnover iii. Inventory turnover iv. Debt to equity V. Interest coverage vi. Gross margin vii. Profit margin viii. Return on assets ix. Return on equity i. Current ratio ii. Accounts receivable turnover iii. Inventory turnover iv. Debt to equity V. Interest coverage vi. Gross margin vii. Profit margin viii. Return on assets 2024 ix. Return on equity Wildhorse Manufacturing times times do % 2023 do % times times % do % % % do do % % do % do % do 2024 Blossom Production times times do % do % do % % do % 2023 times times do % do % % do % do % do
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