Ch: Analyzing Financial Statements The current year financial statement for sand and Juffair companies are presented below. Balance sheet at 31 Dec 2019 Item Cash Account receivable (net) Inventory Property & equipment (net) Other assets Total assets Sand 45000 45000 95000 160000 90000 435000 Juffair 22000 35000 45000 415000 320000 837000
Ch: Analyzing Financial Statements The current year financial statement for sand and Juffair companies are presented below. Balance sheet at 31 Dec 2019 Item Cash Account receivable (net) Inventory Property & equipment (net) Other assets Total assets Sand 45000 45000 95000 160000 90000 435000 Juffair 22000 35000 45000 415000 320000 837000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Ch: Analyzing Financial Statements
The current year financial statement for sand and Juffair companies are presented below.
Balance sheet at 31 Dec 2019
Item
Cash
Account receivable (net)
Inventory
Property & equipment (net)
Other assets
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
Income statement at 31 Dec 2019
item
Sales revenue (1/3 on credit)
(-) Cost of goods sold
(-) Operating expenses
Net income
Other data
item
Per share stock price at end of current year
Average income tax rate
Dividends declared and paid in current year
Sand
45000
45000
95000
160000
90000
435000
95000
75000
155000
40000
70000
435000
Sand
440000
230000
159000
51000
Sand
23
30%
34000
Juffair
22000
35000
45000
415000
320000
837000
65000
65000
522000
110000
75000
837000
Juffair
800000
399000
315000
86000
Juffair
25
30%
153000
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. Sand company 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. Calculate the ratio analysis of each company.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0f8093a-a941-4dbd-a9cb-146e19d1a5b4%2F28cb20cc-79f3-4c75-99ce-3915bf0f8c3d%2F1dnwmx1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ch: Analyzing Financial Statements
The current year financial statement for sand and Juffair companies are presented below.
Balance sheet at 31 Dec 2019
Item
Cash
Account receivable (net)
Inventory
Property & equipment (net)
Other assets
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
Income statement at 31 Dec 2019
item
Sales revenue (1/3 on credit)
(-) Cost of goods sold
(-) Operating expenses
Net income
Other data
item
Per share stock price at end of current year
Average income tax rate
Dividends declared and paid in current year
Sand
45000
45000
95000
160000
90000
435000
95000
75000
155000
40000
70000
435000
Sand
440000
230000
159000
51000
Sand
23
30%
34000
Juffair
22000
35000
45000
415000
320000
837000
65000
65000
522000
110000
75000
837000
Juffair
800000
399000
315000
86000
Juffair
25
30%
153000
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. Sand company 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. Calculate the ratio analysis of each company.
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