Which company stock is better to invest and why

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 83E
icon
Related questions
Question
100%
Which company stock is better to invest and why
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: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
+
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
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
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning