AutoSave .HH Home Insert 7 LD V Paste 9? Page 3 of 6 E'dvc'; Draw Calibri I 575 Words Design Layout English ( References nlted States) *3 Case 1 Financial Stmt Analysis Summer 2021 Mailings Review View Acrobat Selected income statement date for current year: Net Sales (all on credit) Cost of Goods sold Income from Operations Interest expense Net Income Table Design Layout AaBchDdEe AaBchDdEe K?) Normal No Spacing Styles Dictate Pane E 1 . 353,000 215,000 32,000 54,000 Selected balance sheet data at the beginning of the current year: Current Receivables, net Inventories Total assets Preferred shares, $10.00 (2000 shares) Common Shares (10,000 shares) (6000 shares) Total shareholder's Equity as\"; 44,000 97,000 259,000 10,000 126,000 Selected balance sheet data at the wof the current year: Current Assets: Cash Temporary Investments Current receivables, net Inventories Prepaid Expenses Total Current Assets Total Assets Total Current Liabilities Total Liabilities Preferred shares, $10.00 (2000 shares) Common Shares (10,000 shares) (6000 shares) Total shareholder's Equity Market price per share of common stock 551%; 25,000 22,000 42,000 34,000 2,000 175,000 273,000 107,000 107,000 10,000 166,000 48 IE Share Q Q Comments AutoSave OFF wa Case 1 Financial Stmt Analysis Summer 2021 - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Acrobat Table Design Layout Tell me Share Comments Calibri 12 A A Aa v AaBbCcDdEe AaBbCcDdE Paste B I U A E Normal No Spacing Styles Dictate Sensitivity Create and Share Request ab X2 Pane Adobe PDF Signatures RATIO ANALYSIS (STATEMENT ANALYSIS) Assume the role of a banker and you have funds to lend to only one company. You have narrowed your choices to a company in the air conditioning & heating business - either Reitzel Heating or Klassen. You are given the following financial data for both companies on the following page. For each company calculate the following (3 pts): Current Ratio Acid test ratio Inventory turnover Days' sales in average receivable Debt ratio Times interest earned ratio Return on shareholders' equity Earnings per share of common stock Price Earnings Ratio Debt to Equity Ratio Required: 1. Prepare an executive summary explaining which company you would loan the funds to. Justify your answer using the ratios that you calculated. (6 pts) 2. Would you consider becoming an equity holder for either company? Why or why not? (6 pts) Page 2 of 6 575 words X English (United States) Focus E + 92%