The current year financial statements for Blue Water Company andPrime Fish Company are presented below. Blue Water Prime FishBalance sheet: Cash $ 41,100 $ 20,900 Accounts receivable (net)38,500 31,300 Inventory 98,500 40,600 Property & equipment(net) 141,500 402,200 Other assets 84,100 306,000 Total assets $403,700 $ 801,000 Current liabilities $ 98,500 $ 50,500 Long-termdebt (interest rate: 15%) 65,700 60,200 Capital stock ($10 parvalue) 148,700 513,000 Additional paid-in capital 29,100 106,100Retained earnings 61,700 71,200 Total liabilities and stockholders’equity $ 403,700 $ 801,000 Income statement: Sales revenue (1/2 oncredit) $ 445,500 $ 801,000 Cost of goods sold (240,500 ) (400,100) Operating expenses (161,200 ) (311,100 ) Net income $ 43,800 $89,800 Other data: Per share stock price at end of current year $22.1 $ 16 Average income tax rate 45 % 45 % Dividends declared andpaid in current year $ 33,100 $ 148,500 Both companies are in thefish catching and manufacturing business. Both have been inbusiness 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, “Weavoid what we consider to be undue risk.” Neither company ispublicly held. Required: 1. Complete a schedule that reflects aratio analysis of each company. (Round your intermediatecalculations and final answers to 2 decimal places. Enterpercentage answers rounded to 2 decimal places (i.e. 0.1234 shouldbe entered as 12.34).) Ratio BLUE WATER COMPANY PRIME FISH COMPANYProfitability ratios: 1. Return on equity 2. Return on assets 3.Financial leverage percentage 4. Net profit margin 5. Earnings pershare Turnover ratios: 6. Total asset turnover 7. Fixed assetturnover 8. Receivable turnover 9. Inventory turnover Liquidityratios: 10. Current ratio 11. Quick ratio 12. Cash ratio Solvencyratios: 13. Debt/equity ratio Market ratios: 14. Pricelearningsratio 15. Dividend yield ratio
