Sandy Panchaud has come to you for some independent financial advice. He is considering investing some of

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Sandy Panchaud has come to you for some independent financial advice. He is considering investing some of his money in an operating company, and he wants to know which of the two alternatives he has identified is the better investment. They are both in the same industry, and Mr. Panchaud feels he could buy either for book value. The most recent statements for each company are provided below:


Required:
Prepare a response to Mr. Panchaud. Your response should include an appropriate selection of ratios and a common-size (vertical analysis) income statement.

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Intermediate Accounting Volume 2

ISBN: 9781260881240

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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