Which company stock is better to invest and why
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Which company stock is better to invest and why
Transcribed Image Text:Asset
Net sales/ 61,750/43,850+41,850
/2=1.44
Turnove Average
#
total
assets
362,000/159,750+161,
250/2-2.25
Return
Net
3,245/41,850-0.077
on
income/t
Assets
otal
13,580/159,750=0.08
assets
Return
Net
3245-
income-
495/13,240+15450=
on
Preferred
Commo
0.19
dividend/A
n
Stockhol
verage
common
13,580-
stockholde 3850/62480+71,450=0
der's
Equity
rs
equity
1
1.44
2.25
0.077 0.08
19
0.14
Transcribed Image Text:+
Ratio
Analysi Formula
S
current
ratio
Current
assets/
Current
liabilities
Account
Net sales/ 61,750/8100-7.6
Receivab Average
362.000/4120=87.8
le
accounts
Turnove receivabl
r
e,
net
Average
365/
365/7.6-48
Collectio
Account
n Period
Receivable 365/87.8-4.15
Turnover
Inventor Cost of
Y
Turnove
goods
sold/
Average
inventory
Days in
Average
Inventor
inventory
/ cost of
good
sold 365
current
net cash
Cash
provided
by
Debt
operating
Coverag activities/
e
average
current
liability
Profit
Net
Margin
income/n
et sales
$20.245/ $11,245=1.8
$48,750/ $50,450=0.9
39,900/8,020-4.97
27,680/32,500=0.8
8.020/39,900*365=73.
32.500/27,680*365=42
8
4900/11,245+10.300/2=
0.45
25.900/52,640+50,450/2=
0.50
3,245/61750=0.050
13,580/362,000=0.03
Pan
Otha da,
Inc
1.8 0.9
7.6 87.8
48.02
4.15
4.97 0.8
73.3
428.5
0.45 0.50
0.05 0.03
AI
50 2
im
Interpret
ation
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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