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Profitability ratios: 1. 2. 3. 4. 5. 6. Return on equity Return on assets Gross profit percentage Net profit margin Earnings per share Quality of income

Profitability ratios: 1. 2. 3. 4. 5. 6. Return on equity Return on assets Gross profit percentage Net profit margin Earnings per share Quality of income

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 10E
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Profitability ratios: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ratio Asset turnover ratios: Return on equity Return on assets Gross profit percentage Net profit margin 11. 12. 13. Earnings per share Quality of income Liquidity ratios: Total asset turnover Fixed asset turnover Receivable turnover Inventory turnover Current ratio Quick ratio Cash ratio Solvency ratios: 17. 14. Times interest earned ratio 15. Cash coverage ratio 16. Market ratios: Debt/equity ratio Price/earnings ratio BLUE WATER COMPANY 0.00 0.00 0.00 % % % % PRIME FISH COMPANY 0.00 0.00 0.00 % % % % Check my work 2
Transcribed Image Text:Profitability ratios: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ratio Asset turnover ratios: Return on equity Return on assets Gross profit percentage Net profit margin 11. 12. 13. Earnings per share Quality of income Liquidity ratios: Total asset turnover Fixed asset turnover Receivable turnover Inventory turnover Current ratio Quick ratio Cash ratio Solvency ratios: 17. 14. Times interest earned ratio 15. Cash coverage ratio 16. Market ratios: Debt/equity ratio Price/earnings ratio BLUE WATER COMPANY 0.00 0.00 0.00 % % % % PRIME FISH COMPANY 0.00 0.00 0.00 % % % % Check my work 2
2 Skipped eBook Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold. Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Blue Water $ 42,800 47,000 90,000 167,000 85,800 S 432,600 S 90,000 77,600 160,600 30,800 73,600 $ 432,600 $ 420,000 (232,000) (164,600) S 23,400 S 23.8 30% $ 34,800 Prime Fish $ 19,200 36,400 50,800 422,600 323,000 $ 852,000 $76,000 63,600 530,000 107,800 74,600 $ 852,000 $ 784,000 (401,800) (312,800) $ 69,400 $ $ 157,000 33 30% Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neither company is publicly held. 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 (l.e. 0.1234 should be entered as 12.34).) Check my work
Transcribed Image Text:2 Skipped eBook Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold. Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Blue Water $ 42,800 47,000 90,000 167,000 85,800 S 432,600 S 90,000 77,600 160,600 30,800 73,600 $ 432,600 $ 420,000 (232,000) (164,600) S 23,400 S 23.8 30% $ 34,800 Prime Fish $ 19,200 36,400 50,800 422,600 323,000 $ 852,000 $76,000 63,600 530,000 107,800 74,600 $ 852,000 $ 784,000 (401,800) (312,800) $ 69,400 $ $ 157,000 33 30% Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neither company is publicly held. 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 (l.e. 0.1234 should be entered as 12.34).) Check my work
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