Question: Selected financial data for a recent year for two clothing competitors, Le Château Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except share
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Instructions
(a) For each company, calculate the following values and ratios. Where available, industry averages are included in parentheses.
1. Working capital (n/a)
2. Current ratio (2.0:1)
3. Debt to total assets (24.0%)
4. Earnings per share (n/a)
5. Price-earnings ratio (19.3 times)
(b) Compare the liquidity, solvency, and profitability of the two companies and their industry.
Current assets Total assets Current liabilities Total liabilities Profit (loss) available to common sh Share price Weighted average number of common shares Le Chteau $132,223 220,210 47,382 80,412 (8,717) $4.08 25,659 Reitmans $301,374 594,555 86,914 139,537 26,619 $12.39 65,188 areholders
Step by Step Solution
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a in thousands Le Chteau Reitmans 1 Working capital 132223 47382 301374 86914 84841 214460 2 Current ... View full answer
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