1. Using year-end balances for all ratios, compute the following ratios Note: Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (.e. 0.1234 should be entered as 12.34). Profitability ration: Ratle 1. Retum on equilty ratio 2. Return on assets ratio 3. Gross profit margin 4. Net profit margin ratio 5. Eamings per share ratio Asset lumover ratios 6. Total asset tumover ratio 7. Fixed asset tumover ratio 8. Receivable tumover ratio 9 Inventory tumover ratio Liquidity ratios 10. Cument ratio 11, Quick ratio 12. Cash rallo Solvency ratios 13. Debt to equity ratio Market radios 14. Price eurings 15. Dividend yield ratio BLUE WATER COMPANY $ 18.91% 11.19% 46.09% 10.07% 2.13 1.11 3.19 3.92 2.43 1.80 0.80 0.41 0.69 10.34 0.10% S PRIME FISH COMPANY 13.21 % 11.40 % 50.12 % 11.35% 1.24 1.01 2.00 8.62 10.00 1.80 1.06 0.43 * 0.16 12.06 0.19%
1. Using year-end balances for all ratios, compute the following ratios Note: Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (.e. 0.1234 should be entered as 12.34). Profitability ration: Ratle 1. Retum on equilty ratio 2. Return on assets ratio 3. Gross profit margin 4. Net profit margin ratio 5. Eamings per share ratio Asset lumover ratios 6. Total asset tumover ratio 7. Fixed asset tumover ratio 8. Receivable tumover ratio 9 Inventory tumover ratio Liquidity ratios 10. Cument ratio 11, Quick ratio 12. Cash rallo Solvency ratios 13. Debt to equity ratio Market radios 14. Price eurings 15. Dividend yield ratio BLUE WATER COMPANY $ 18.91% 11.19% 46.09% 10.07% 2.13 1.11 3.19 3.92 2.43 1.80 0.80 0.41 0.69 10.34 0.10% S PRIME FISH COMPANY 13.21 % 11.40 % 50.12 % 11.35% 1.24 1.01 2.00 8.62 10.00 1.80 1.06 0.43 * 0.16 12.06 0.19%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Weat
Subject: acounting
Transcribed Image Text:1
The current year financial statements for Blue Water Company and Prime Fish Company are presented below
Frine Fish
$ 21,000
31,000
45,000
401,000
305,000
$ 790,000
Balance sheet
Cash
Accounts receivable (net)
Inventory
Property & equipment (net)
Other asset
Total assets
Current liabilities
Long-term debt (interest rate: 106)
Capital stock ($10 par value)
Additional paid-in capital
Retained earnings
Total liabilities and stockholders' equity
Income statement
Sales revenue (1/3 on credit)
Cost of goods sold
Operating expenses
Net income
Other data
Per share stock price at end of current year
Average income tax rate
Dividends declared and paid is current year
Ratin
Profitability ration:
1. Retum en equity ratio
on assets ratio
3. Gross profit margin
4. Net profit margin ratio
5. Earnings per share ratio
Asset lumover ratios:
6. Total asset turnover ratio
7. Fixed asset tumover ratio
8. Receivable tumover ratio
9. Inventory tumover ratio
Liquidity ratios
10. Current ratio
11. Quick ratio
12. Cash ratio
Solvency ratios
13. Debt to equity ratio
Market radios
14. Price
ing
15. Dividend yield ratio
BLUE WATER
COMPANY
$
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.
18.91 %
11.19%
46.09%
10.07%
213
Required:
1. Using year-end balances for all ratios, compute the following ratios:
Note: Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2
decimal places (ie. 0.1234 should be entered as 12.34).
1.11
3.19
3.92
243
1.80
0.80
0.41
0.69
10.34
0.10%
S
PRIME FISH
COMPANY
Blue Vater
$ 41,000
38,000
1.01
2.00
8.62
10.00
13.21 %
11.40%
50.12 %
11.35%
124
99,000
140,000
$4,000
$400,000
$ 99,000
65,000
140,000
29,000
61,000
$ 402,000
0.16
$.447,000
(241,000)
161,000
$ 45,000
12.06
1.60
1.06
043 A
0.19%
122
30%
$33,000
49,000
40,000
512,000
106,000
71,000
$ 798,000
$ 602,000
(400,000)
(311,000)
$ $1,000
$ 15
30%
$ 140,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education