Question: How do you calculate those using the information below? 1. Calculate the following ratios for which sufficient information is avaialble. (Round all calculations to two

How do you calculate those using the information below?

1. Calculate the following ratios for which sufficient information is avaialble. (Round all calculations to two decimal places)
5. Earnings per share
6. Price Earning Ratio
7. Receivables Turnover
8. Days to collect - inventory turnover and Days to sell
9. current ratio
10. Debt - to - assets
TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. Common stock equals
the par value per share times the number of shares.

Using Ration to Compare Alternative Investment Opprtunities
The financial statement for TCC and DCC are summarized here:
TCC DCC
Balance Sheet
Cash $ 35,000 $ 22,000
Accounts Receivable, Net 40,000 30,000
Inventory 100,000 40,000
Equipment, Net 180,000 300,000
Other Assets 45,000 408,000
Total Assets $400,000 $800,000
Current Liabilities $ 100,000 $ 50,000
Note Payable (Long-Term) 60,000 370,000
Total Liabilities 160,000 420,000
Common Stock (Par $10) 150,000 200,000
Additional Pain-in Capital 30,000 110,000
Retained Earnings 60,000 70,000
Total Liabilities and Stockholder's Equity $400,000 $800,000
Income Statement
Sales Revenue $ 450,000 $ 810,000
Cost of Goods Sold 245,000 405000
Other Expenses 160,000 315000
Net Income $45,000 $90,000
Other Data
Estimated value of each share at end of year $ 18 $ 27
Selected Data from Previous Year
Accounts Receivable, Net $ 20,000 $ 38,000
Inventory 92,000 45,000
Equipment, Net 180,000 300,000
Notes Payable (Long-Term) 60,000 70,000
Total Stockholders' Equity 231,000 440,000
Important information about both Companies:
The companies are in the same line of business and are direct competitors in a large metropolitan area.
Both have been in business approximately 10 years and each has had steady growth.
Desipite these similarities, the management of each has a different viewpoint in many respects.
DCC is more conservative, and as its president said, "We avoid what we consider to be undue risk."
Both companies use straight-line depreciation, but DCC estimate slightly shorter useful lives than TCC.
No shares were issued in the current year and neither company is publicly held.
DCC has an annual audit by a CPA, but TCC does not.
Assume the end-of-year total assets and net equipment balances approximate the year's average and all sales are on account.

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