The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($18 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Blue Water $ 42,300 44,500 92,500 47,800 159,500 416,600 85,300 318,000 $ 424,100 $ 837,000 $ 68,500 62,600 $ 92,500 74,100 157,100 30,300 70,100 $ 424,100 $ 427,500 (234,500) (163,600) $ 29,400 $ 23.3 Prime Fish 45% $ 34,300 $ 19,700 34,900 Net income Other data Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years 525,000 107,300 73,600 $ 837,000 $ 789,000 (401,300) (312,300) $ 75,480 $ 28 45% $ 154,500
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($18 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Blue Water $ 42,300 44,500 92,500 47,800 159,500 416,600 85,300 318,000 $ 424,100 $ 837,000 $ 68,500 62,600 $ 92,500 74,100 157,100 30,300 70,100 $ 424,100 $ 427,500 (234,500) (163,600) $ 29,400 $ 23.3 Prime Fish 45% $ 34,300 $ 19,700 34,900 Net income Other data Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years 525,000 107,300 73,600 $ 837,000 $ 789,000 (401,300) (312,300) $ 75,480 $ 28 45% $ 154,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:=
The current year financial statements for Blue Water Company and Prime Fish Company are presented below.
Prime Fish
Balance sheet
Cash
Accounts receivable (net)
Inventory
Property & equipment (net)
Other assets
Total assets
Current liabilities
Long-term debt (interest rate: 15%)
Capital stock ($10 par value)
Additional paid-in capital
Retained earnings
Total liabilities and stockholders' equity
Income statement
Sales revenue (1/2 on credit)
Cost of goods sold
Operating expenses
Net income
Other data
Per share stock price at end of current year
Blue Water
$ 42,300
44,500
92,500
159,500
85,300
$ 424,100
$ 92,500
74,100
157,100
30,300
70,100
$ 424,100
$ 427,500
(234,500)
(163,600)
$ 29,400
$ 23.3
45%
$ 19,700
34,900
47,800
416,600
318,000
$ 34,300
$ 837,000
$ 68,500
62,600
525,000
107,300
73,600
$ 837,000
$ 789,000
(401,300)
(312,300)
$ 75,400
$28
45%
Average income tax rate
Dividends declared and paid in current year
Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years,
$ 154,500
Transcribed Image Text:Required:
1. Using year-end balances for all ratios, compute the following ratios:
Note: Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2
decimal places (1.e. 0.1234 should be entered as 12.34).
Profitability ratios:
1. Return on equity ratio
2. Return on assets ratio
3. Gross profit margin
Ratio
4. Net profit margin ratio
5. Earnings per share ratio
Asset turnover ratios:
6. Total asset turnover ratio
7. Fixed asset turnover ratio
8. Receivable turnover ratio
9. Inventory turnover ratio
Liquidity ratios:
10. Current ratio
11. Quick ratio
12. Cash ratio
Solvency ratios:
13. Debt to equity ratio
Market ration:
14. Price earnings ratio
15. Dividend yield ratio
BLUE WATER
COMPANY
%
%
%
%
%
PRIME FISH
COMPANY
%
%
%
%
%
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