1-> O Better Boat Company wants to invest some of its excess cash in trading securities...
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1-> O Better Boat Company wants to invest some of its excess cash in trading securities and is considering two investments, The Kayak Company (KC) and Very Life Vests (VLV). The income statement, balance sheet, and other data for both companies follow for 2026 and 2025, as well as selected data for 2024: View the data. Read the requirements. Requirement 1. Compute each ratio for both companies for 2026 and 2025. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio Begin by selecting the correct formula. Current ratio Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Year KC 2026 2025 Ratio Current Current b. Cash ratio Begin by selecting the correct formula. Cash ratio = Ratio Cash Cash VLV Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Year KC 2026 2025 ... VLV Requirements 1. Using the financial statements given, compute the following ratios for both companies for 2026 and 2025. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio b. Cash ratio c. Inventory turnover d. Accounts receivable turnover e. Gross profit percentage f. Debt ratio g. Debt to equity ratio h. Profit margin ratio i. Asset turnover ratio j. Rate of return on common stockholders' equity Earnings per share Price/earnings ratio k. 1. m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2026 and 2025. Make a recommendation to Better Boat Company about investing in these companies. Which company would be a better investment, The Kayak Company or Very Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. Print Done X Data Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Interest Expense Income before Income Tax Income Tax Expense Net Income Balance Sheet The Kayak Company Comparative Financial Statements Years Ended December 31, 2026 2024 2025 $430,642 $ 425,680 258,392 256,672 172,250 169,008 153,220 151,082 19,030 17,926 800 18,230 5,104 13,126 $ 770 17,156 4,220 12,936 Assets Cash and Cash Equivalents $ 68,340 $ 70,283 Print Done Very Life Vests Comparative Financial Statements Years Ended December 31, 2026 2024 69 $ 410,350 $ 383,830 299,340 280,230 111,010 103,600 78,050 70,490 32,960 33,110 2,700 2,980 30,260 30,130 8,760 8,650 21,500 $ 21,480 2025 65,351 $ 54,920 X Data Long-term Assets Total Assets Liabilities Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding 90,590 $ 299,980 $ $ 69,500 $ 31,680 101,180 $ $ 299,980 $ 90,218 288,038 $ 72,790 80,810 126,010 116,978 198,800 21.10 $ 0.38 8,500 60,290 29,960 90,250 197,788 $ 197,680 288,038 Print 276,456 $ 33.64 0.35 8,000 Done $ 116,740 116,130 315,210 $ 312,850 $ 69 90,800 $ 90,100 96,320 105,930 187,120 196,030 111,380 16,710 128,090 $ 315,210 $ 312,850 102,400 14,420 116,820 S 46.16 $ 0.54 8,500 51.14 0.46 8,000 310,250 103,800 X Data Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Liabilities Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 44,780 79,910 16,360 209,390 90,590 $299,980 $ $ 69,500 $ 31,680 101,180 72,790 126,010 198,800 44,470 $ 66,380 16,687 197,820 90,218 288,038 $ 276,456 $ 60,290 29,960 90,250 44,140 76,330 80,810 116,978 197,788 $ 197,680 $299,980 $ 288,038 Print Done 39,890 38,700 $ 68,520 65,260 24,709 37,840 198,470 196,720 116,740 116,130 315,210 $312,850 $ 90,800 $ 90,100 96,320 105,930 187,120 196,030 111,380 16,710 128,090 102,400 14,420 116,820 S $ 315,210 $ 312,850 36,490 59,900 310,250 103,800 X in 1-> O Better Boat Company wants to invest some of its excess cash in trading securities and is considering two investments, The Kayak Company (KC) and Very Life Vests (VLV). The income statement, balance sheet, and other data for both companies follow for 2026 and 2025, as well as selected data for 2024: View the data. Read the requirements. Requirement 1. Compute each ratio for both companies for 2026 and 2025. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio Begin by selecting the correct formula. Current ratio Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Year KC 2026 2025 Ratio Current Current b. Cash ratio Begin by selecting the correct formula. Cash ratio = Ratio Cash Cash VLV Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Year KC 2026 2025 ... VLV Requirements 1. Using the financial statements given, compute the following ratios for both companies for 2026 and 2025. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio b. Cash ratio c. Inventory turnover d. Accounts receivable turnover e. Gross profit percentage f. Debt ratio g. Debt to equity ratio h. Profit margin ratio i. Asset turnover ratio j. Rate of return on common stockholders' equity Earnings per share Price/earnings ratio k. 1. m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2026 and 2025. Make a recommendation to Better Boat Company about investing in these companies. Which company would be a better investment, The Kayak Company or Very Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. Print Done X Data Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Interest Expense Income before Income Tax Income Tax Expense Net Income Balance Sheet The Kayak Company Comparative Financial Statements Years Ended December 31, 2026 2024 2025 $430,642 $ 425,680 258,392 256,672 172,250 169,008 153,220 151,082 19,030 17,926 800 18,230 5,104 13,126 $ 770 17,156 4,220 12,936 Assets Cash and Cash Equivalents $ 68,340 $ 70,283 Print Done Very Life Vests Comparative Financial Statements Years Ended December 31, 2026 2024 69 $ 410,350 $ 383,830 299,340 280,230 111,010 103,600 78,050 70,490 32,960 33,110 2,700 2,980 30,260 30,130 8,760 8,650 21,500 $ 21,480 2025 65,351 $ 54,920 X Data Long-term Assets Total Assets Liabilities Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding 90,590 $ 299,980 $ $ 69,500 $ 31,680 101,180 $ $ 299,980 $ 90,218 288,038 $ 72,790 80,810 126,010 116,978 198,800 21.10 $ 0.38 8,500 60,290 29,960 90,250 197,788 $ 197,680 288,038 Print 276,456 $ 33.64 0.35 8,000 Done $ 116,740 116,130 315,210 $ 312,850 $ 69 90,800 $ 90,100 96,320 105,930 187,120 196,030 111,380 16,710 128,090 $ 315,210 $ 312,850 102,400 14,420 116,820 S 46.16 $ 0.54 8,500 51.14 0.46 8,000 310,250 103,800 X Data Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Liabilities Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 44,780 79,910 16,360 209,390 90,590 $299,980 $ $ 69,500 $ 31,680 101,180 72,790 126,010 198,800 44,470 $ 66,380 16,687 197,820 90,218 288,038 $ 276,456 $ 60,290 29,960 90,250 44,140 76,330 80,810 116,978 197,788 $ 197,680 $299,980 $ 288,038 Print Done 39,890 38,700 $ 68,520 65,260 24,709 37,840 198,470 196,720 116,740 116,130 315,210 $312,850 $ 90,800 $ 90,100 96,320 105,930 187,120 196,030 111,380 16,710 128,090 102,400 14,420 116,820 S $ 315,210 $ 312,850 36,490 59,900 310,250 103,800 X in
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Related Book For
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood
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