Blue Water Prime Fish Balance sheet: $ 41, 200 39,000 $ 20, 800 Cash Accounts receivable (net) Inventory Property & equipment (net) 31,600 98,eee 143,000 41, 200 403,400 84, 200 $ 405,400 $ 98,eee 66,400 Other assets 307,000 $ 804,000 $ 52,000 60,400 Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 149,400 514,000 29,200 62,400 $ 405,400 106, 200 71,400 $ 804,000 Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses $ 444,000 (240,000) (161,400) $ 42,600 $ B00, 000 (400, 200) (311,200) 88, 600 Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year 22.2 17 30% $ 33,200 $ 149,000 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. Complete a schedule that reflects a ratio analysis of each company. (Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) BLUE WATER PRIME FISH Ratio COMPANY COMPANY Profitability ratios: 1. Return on equity % % 2 Return on assets % % 3. Gross profit percentage %
Blue Water Prime Fish Balance sheet: $ 41, 200 39,000 $ 20, 800 Cash Accounts receivable (net) Inventory Property & equipment (net) 31,600 98,eee 143,000 41, 200 403,400 84, 200 $ 405,400 $ 98,eee 66,400 Other assets 307,000 $ 804,000 $ 52,000 60,400 Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 149,400 514,000 29,200 62,400 $ 405,400 106, 200 71,400 $ 804,000 Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses $ 444,000 (240,000) (161,400) $ 42,600 $ B00, 000 (400, 200) (311,200) 88, 600 Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year 22.2 17 30% $ 33,200 $ 149,000 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. Complete a schedule that reflects a ratio analysis of each company. (Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) BLUE WATER PRIME FISH Ratio COMPANY COMPANY Profitability ratios: 1. Return on equity % % 2 Return on assets % % 3. Gross profit percentage %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Blue Water
Prime Fish
Balance sheet:
$ 41,200
$ 20,800
Cash
Accounts receivable (net)
Inventory
Property & equipment (net)
39,000
31,600
98,eee
143,000
41,200
403,400
84, 200
$ 405,400
$ 98,eee
66,400
Other assets
307,000
$ 804,000
$ 52,000
60,400
Total assets
Current liabilities
Long-term debt (interest rate: 10%)
Capital stock ($10 par value)
Additional paid-in capital
Retained carnings
149,400
29, 200
62,400
$ 405,400
514,000
106, 200
71,400
$ 804,000
Total liabilities and stockholders' equity
Income statement:
Sales revenue (1/3 on credit)
Cost of goods sold
Оperating exхрenses
Net income
$ 444,eee
(240,000)
(161,400)
$ 42,600
$ B00, 000
(400, 200)
(311,200)
$
88,600
Other data:
Per share stock price at end of current year
Average income tax rate
Dividends declered and paid in current year
22.2
17
30%
$ 33,200
$ 149,000
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. Complete a schedule that reflects a ratio analysis of each company. (Round your intermediate calculations and final answers to 2
decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
BLUE WATER
COMPANY
PRIME FISH
COMPANY
Ratio
Profitability ratios:
1.
Return on equity
%
%
2.
Return on assets
%
3.
Gross profit percentage
%
4.
Net profit margin
5.
Earnings per share
6.
Quality of income
Asset turnover ratios:
7.
Total asset tumover
8.
Fixed asset turnover
9.
Receivable turnover
10.
Inventory turnover
Liquidity ratios
11.
Current ratio
12.
Quick ratio
13.
Cash ratio
Solvency ratios:
14.
Times interest eamed ratio
15.
Cash coverage ratio
16.
Debtequity ratio
Market ratios:
17.
Pricelearnings ratio
18.
Dividend yield ratio
%
%
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