Required: 1. Complete a schedule that reflects a ratio analysis of each company. (Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Ratio BLUE WATER COMPANY PRIME FISH COMPANY Profitability ratios: 1. Return on equity % % 2. Return on assets % % 3. Gross profit percentage % % 4. Net profit margin % % 5. Earnings per share 6. Quality of income Asset turnover ratios: 7. Total asset turnover 8. Fixed asset turnover 9. 10. Receivable turnover Inventory turnover Liquidity ratios: 11. Current ratio 12. Quick ratio 13. Cash ratio Solvency ratios: 14. Times interest earned ratio 15. Cash coverage ratio 16. Debt/equity ratio Market ratios: 17. Price/earnings ratio 18. Dividend yield ratio % % The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data: Blue Water Prime Fish $ 41,600 41,000 $ 20,400 32,800 96,000 149,000 84,600 $ 412,200 $ 96,000 69,200 152,200 29,600 65,200 $ 412,200 43,600 408,200 311,000 $ 816,000 $ 58,000 61,200 518,000 106,600 72,200 $ 816,000 $ 438,000 $ 796,000 (400,600) (311,600) $ 83,800 (238,000) (162,200) $ 37,800 Per share stock price at end of current year Average income tax rate $ 22.6 30% $ 21 30% Dividends declared and paid in current year $ 33,600 $ 151,000 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. Blue Water is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neither company is publicly held