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 2decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)BLUE WATERPRIME FISHCOMPANYRatioCOMPANYProfitability ratios:13.60 %8.20 %45.44 %11.45 %9.72 %49.45 %1.Return on equity2.Return on assets3.Gross profit percentage4.Net profit margin7.89 %10.11 %5.Earnings per share$2.221.546.Quality of incomeAsset turnover ratios:7.Total asset turnover1.040.968.Fixed asset turnover2.821.939.Receivable turnover5.1011.7710.Inventory turnover2.508.83Liquidity ratios:11.Current ratio1.891.5912.Quick ratio0.890.8613.Cash ratio0.440.32Solvency ratios:14.Times interest earned ratio15.Cash coverage ratio16.Debt/equity ratio0.660.18Market ratios:17.Pricelearnings ratio10.3115.5818.Dividend yield ratio9.61 %12.21 % Blue WaterPrime FishBalance sheet:$ 41,90042,50094,500153,50084,900$ 417,300Cash$ 20,100Accounts receivable (net)InventoryProperty & equipment (net)33,70045,400411,800314,000$ 825,000Other assetsTotal assets94,50071,300154,30029,90067,300$ 417,300Current liabilities$Long-term debt (interest rate: 15%)Capital stock ($10 par value)Additional paid-in capitalRetained earnings62,50061,800521,000106,90072,800$ 825,000Total liabilities and stockholders' equityIncome statement:Sales revenue (1/2 on credit)Cost of goods soldOperating expenses$ 433,500(236,500)(162,800)$4$ 793,000(400,900)(311,900)$4Net income34,20080, 200Other data:Per share stock price at end of current yearAverage income tax rateDividends declared and paid in current year22.92445%45%33,900$ 152,500

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Answered: I need to find the Quality of Income,…

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

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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