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I need to find the Quality of Income, Times interest earned ratio and Cash coverage ratio for Blue Water and Prime Fish.

I need to find the Quality of Income, Times interest earned ratio and Cash coverage ratio for Blue Water and Prime Fish.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need to find the Quality of Income, Times interest earned ratio and Cash coverage ratio for Blue Water and Prime Fish.

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 COMPANY Ratio COMPANY Profitability ratios: 13.60 % 8.20 % 45.44 % 11.45 % 9.72 % 49.45 % 1. Return on equity 2. Return on assets 3. Gross profit percentage 4. Net profit margin 7.89 % 10.11 % 5. Earnings per share $ 2.22 1.54 6. Quality of income Asset turnover ratios: 7. Total asset turnover 1.04 0.96 8. Fixed asset turnover 2.82 1.93 9. Receivable turnover 5.10 11.77 10. Inventory turnover 2.50 8.83 Liquidity ratios: 11. Current ratio 1.89 1.59 12. Quick ratio 0.89 0.86 13. Cash ratio 0.44 0.32 Solvency ratios: 14. Times interest earned ratio 15. Cash coverage ratio 16. Debt/equity ratio 0.66 0.18 Market ratios: 17. Pricelearnings ratio 10.31 15.58 18. Dividend yield ratio 9.61 % 12.21 %
Transcribed Image Text: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 COMPANY Ratio COMPANY Profitability ratios: 13.60 % 8.20 % 45.44 % 11.45 % 9.72 % 49.45 % 1. Return on equity 2. Return on assets 3. Gross profit percentage 4. Net profit margin 7.89 % 10.11 % 5. Earnings per share $ 2.22 1.54 6. Quality of income Asset turnover ratios: 7. Total asset turnover 1.04 0.96 8. Fixed asset turnover 2.82 1.93 9. Receivable turnover 5.10 11.77 10. Inventory turnover 2.50 8.83 Liquidity ratios: 11. Current ratio 1.89 1.59 12. Quick ratio 0.89 0.86 13. Cash ratio 0.44 0.32 Solvency ratios: 14. Times interest earned ratio 15. Cash coverage ratio 16. Debt/equity ratio 0.66 0.18 Market ratios: 17. Pricelearnings ratio 10.31 15.58 18. Dividend yield ratio 9.61 % 12.21 %
Blue Water Prime Fish Balance sheet: $ 41,900 42,500 94,500 153,500 84,900 $ 417,300 Cash $ 20,100 Accounts receivable (net) Inventory Property & equipment (net) 33,700 45,400 411,800 314,000 $ 825,000 Other assets Total assets 94,500 71,300 154,300 29,900 67,300 $ 417,300 Current liabilities $ Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings 62,500 61,800 521,000 106,900 72,800 $ 825,000 Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses $ 433,500 (236,500) (162,800) $4 $ 793,000 (400,900) (311,900) $4 Net income 34,200 80, 200 Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year 22.9 24 45% 45% 33,900 $ 152,500
Transcribed Image Text:Blue Water Prime Fish Balance sheet: $ 41,900 42,500 94,500 153,500 84,900 $ 417,300 Cash $ 20,100 Accounts receivable (net) Inventory Property & equipment (net) 33,700 45,400 411,800 314,000 $ 825,000 Other assets Total assets 94,500 71,300 154,300 29,900 67,300 $ 417,300 Current liabilities $ Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings 62,500 61,800 521,000 106,900 72,800 $ 825,000 Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses $ 433,500 (236,500) (162,800) $4 $ 793,000 (400,900) (311,900) $4 Net income 34,200 80, 200 Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year 22.9 24 45% 45% 33,900 $ 152,500
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