The current year financial statements for Blue Water Company and Prime Fish Company are presented below.

Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neither company is publicly held.
Required:
1. Compute as many ratios from Exhibit 13.3 as possible. You will not be able to compute all ratios. You will need to use year-end balances (not averages) for all ratios.
2. Based on the ratios you computed, which company is more efficient at collecting its accounts receivables and turning over its inventory?

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Blue Water Prime Fish Balance Sheet Cash Accounts receivable (net) Inventory Property& equipment (net) Other assets Total assets $ 41,000 38,000 99,000 140,000 84,000 S 402.000 $ 21,000 1,000 40,000 401,000 305,000 $ 798,000 Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ 99,000 65,000 148,000 29,000 61,000 S 402,000 $ 49,000 60,000 512,000 106,000 71,000 $ 798,000 Income Statement Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income $447,000 (241,000) (161,000) s 45,000 $ 802,000 (400,000) (311,000) $ 91.000 Other data Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year S 22 30% $ 15 30% S 33,000 $148,000