Question: Comparative financial statement data for Ayayai Corp. and Marigold Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017. Ayayai
Comparative financial statement data for Ayayai Corp. and Marigold Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017. Ayayai Corp. Marigold Corp. 2017 2017 Net sales $2,052,000 $706,800 Cost of goods sold 1,339,500 387,600 Operating expenses 322,620 111,720 Interest expense 10,260 4,332 Income tax expense 96,900 41,040 Current assets 504,700 193,336 Plant assets (net) 606,480 159,290 Current liabilities 75,611 38,436 Long-term liabilities 123,690 46,380 Net cash provided by operating activities 157,320 41,040 Capital expenditures 102,600 22,800 Dividends paid on common stock 41,040 17,100 Weighted-average number of shares outstanding 80,000 50,000 (a) Compute the net income and earnings per share for each company for 2017. (Round Earnings per share to 2 decimal places, e.g. $2.78.) Net Income Earnings per share Ayayai Corp. $ $ Marigold Corp. $ $ (b) Compute working capital and the current ratios for each company for 2017. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.) Working Capital Current Ratios Ayayai Corp. $ :1 Marigold Corp. $ :1 (c) Compute the debt to assets ratio and the free cash flow for each company for 2017. (Round debt to assets to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Debt to Assets Free Cash Flow Ayayai Corp. % $ Marigold Corp. % $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
