Ch: Analyzing Financial StatementsThe current year financial statement for sand and Juffair companies are presented below.Balance sheet at 31 Dec 2019ItemCashAccount receivable (net)InventoryProperty & equipment (net)Other assetsTotal assetsCurrent liabilitiesLong-term debt (interest rate: 10%)Capital stock ($10 par value)Additional paid-in capitalRetained earningsTotal liabilities and stockholders' equityIncome statement at 31 Dec 2019itemSales revenue (1/3 on credit)(-) Cost of goods sold(-) Operating expensesNet incomeOther dataitemPer share stock price at end of current yearAverage income tax rateDividends declared and paid in current yearSand4500045000950001600009000043500095000750001550004000070000435000Sand44000023000015900051000Sand2330%34000Juffair220003500045000415000320000837000650006500052200011000075000837000Juffair80000039900031500086000Juffair2530%153000Both companies are in the fish catching and manufacturing business. Both have been in businessapproximately 10 years, and each has had steady growth. The management of each has a different viewpointin many respects. Sand company is more conservative, and as its president has said, "We avoid what weconsider to be undue risk". Neither company is publicly held.Required:1. Calculate the ratio analysis of each company.

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...

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