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The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish $ 42,600 46,000 91,000 164,000 85,600 Other 429,200 Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) assets Total assets : Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings 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 $ 19,400 35,800 49,600 420,200 321,000 $ 846,000 $ 73,000 63,200 528,000 107,600 74,200 $ 846,000 $ 91,000 76,200 159,200 30, 600 72,200 $ 429, 200 $ 423,000 (233,000) (164,200) $ 25,800 $ 786,000 (401,600) (312,600) $ 71,800 $ 23.6 30% 34,600 $ 31 30% $ 156,000 $ 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 (i.e. 0.1234 should be entered as 12.34).) Ratio BLUE WATER COMPANY PRIME FISH COMPANY 9.85% 6.01 % 10.12 % 8.49% 2. % 6.10% 1.62 9.13% 1.36 $ $ 0.99 0.93 2.58 1.87 3.13 7.32 Profitability ratios: 1. Return on equity 2. Return on assets 3. Gross profit percentage 4. Net profit margin 5. Earnings per share 6. Quality of income Asset turnover ratios: 7. Total asset turnover 8. Fixed asset turnover 9. Receivable turnover 10. Inventory turnover Liquidity ratios: Current ratio 12. Quick ratio 13. Cash ratio Solvency ratios: 14. Times interest earned ratio 15. Cash coverage ratio 16. Debt/equity ratio Market ratios: 17. Price/earnings ratio 18. Dividend yield ratio 2.56 8.09 11. 2.91 1.44 0.97 0.76 0.47 0.27 on 0.64 0.19 14.57 22.79 00 9.21% 9.53% The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish $ 42,600 46,000 91,000 164,000 85,600 Other 429,200 Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) assets Total assets : Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings 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 $ 19,400 35,800 49,600 420,200 321,000 $ 846,000 $ 73,000 63,200 528,000 107,600 74,200 $ 846,000 $ 91,000 76,200 159,200 30, 600 72,200 $ 429, 200 $ 423,000 (233,000) (164,200) $ 25,800 $ 786,000 (401,600) (312,600) $ 71,800 $ 23.6 30% 34,600 $ 31 30% $ 156,000 $ 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 (i.e. 0.1234 should be entered as 12.34).) Ratio BLUE WATER COMPANY PRIME FISH COMPANY 9.85% 6.01 % 10.12 % 8.49% 2. % 6.10% 1.62 9.13% 1.36 $ $ 0.99 0.93 2.58 1.87 3.13 7.32 Profitability ratios: 1. Return on equity 2. Return on assets 3. Gross profit percentage 4. Net profit margin 5. Earnings per share 6. Quality of income Asset turnover ratios: 7. Total asset turnover 8. Fixed asset turnover 9. Receivable turnover 10. Inventory turnover Liquidity ratios: Current ratio 12. Quick ratio 13. Cash ratio Solvency ratios: 14. Times interest earned ratio 15. Cash coverage ratio 16. Debt/equity ratio Market ratios: 17. Price/earnings ratio 18. Dividend yield ratio 2.56 8.09 11. 2.91 1.44 0.97 0.76 0.47 0.27 on 0.64 0.19 14.57 22.79 00 9.21% 9.53%

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