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 price):

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.

Transcribed Image Text:

Current assets Total assets Current liabilities Total liabilities Profit (loss) available to common sh Share price Weighted average number of common shares Le Château $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