P2.7B (LO 2) (Calculate ratios and comment on liquidity, solvency, and profitability.) Shown below are selected...

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P2.7B (LO 2) (Calculate ratios and comment on liquidity, solvency, and profitability.) Shown below are selected financial data for a recent year for two competitors in the same industry: Clear Ltd. Dot Ltd. Cash $ 2,000 $ 14,000 Accounts receivable Inventory 18,000 8,000 48,000 22,000 Non-current assets Current liabilities 220,000 236,000 30,000 30,000 Non-current liabilities 178.000 90,000 Shareholders' equity 80,000 160,000 Net income 16,000 22,000 Weighted average number of common shares 1,800 11,000 Market price of company's common shares 78 28 Instructions a. For each company, calculate the following values and ratios. Where available, industry averages have been included in parentheses. 1. Working capital (n/a) 2. Current ratio (1.7:1) 3. Debt to total assets (52%) 4. Basic earnings per share (n/a) 5. Price-earnings ratio (16.1 times) b. Compare the liquidity, solvency, and profitability of the two companies and their industry. P2.7B (LO 2) (Calculate ratios and comment on liquidity, solvency, and profitability.) Shown below are selected financial data for a recent year for two competitors in the same industry: Clear Ltd. Dot Ltd. Cash $ 2,000 $ 14,000 Accounts receivable Inventory 18,000 8,000 48,000 22,000 Non-current assets Current liabilities 220,000 236,000 30,000 30,000 Non-current liabilities 178.000 90,000 Shareholders' equity 80,000 160,000 Net income 16,000 22,000 Weighted average number of common shares 1,800 11,000 Market price of company's common shares 78 28 Instructions a. For each company, calculate the following values and ratios. Where available, industry averages have been included in parentheses. 1. Working capital (n/a) 2. Current ratio (1.7:1) 3. Debt to total assets (52%) 4. Basic earnings per share (n/a) 5. Price-earnings ratio (16.1 times) b. Compare the liquidity, solvency, and profitability of the two companies and their industry.