Ch: Analyzing Financial Statements

The current year financial statement for sand and Juffair companies are presented below.

Balance sheet at 31 Dec 2019
Item	Sand	Juffair
Cash	55000	23500
Account receivable (net)	44600	39600
Inventory	99800	49500
Property & equipment (net)	169700	420300
Other assets	96700	321900
Total assets	465800	854800
Current liabilities	96500	64900
Long-term debt (interest rate: 10%)	74350	67250
Capital stock ($10 par value)	176500	545950
Additional paid-in capital	44800	109500
Retained earnings	73650	67200
Total liabilities and stockholders' equity	465800	854800
Income statement at 31 Dec 2019
item	Sand	Juffair
Sales revenue (1/3 on credit)	442320	810300
(-) Cost of goods sold	231200	341500
(-) Operating expenses	163200	322800
Net income	47920	146000
Other data
item	Sand	Juffair
Per share stock price at end of current year	23	25
Average income tax rate	30%	30%
Dividends declared and paid in current year	37500	146000

Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Sand company is more conservative, and as its president has said, We avoid what we consider to be undue risk. Neither company is publicly held.

Required:

1. Calculate the ratio analysis of each company.