Question: Selected financial data for a recent year for two clothing competitors, Le Chteau Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except

Selected financial data for a recent year for two clothing competitors, Le

Chteau Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except

share price): Current assets Total assets Current liabilities Total liabilities Loss to

Selected financial data for a recent year for two clothing competitors, Le Chteau Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except share price): Current assets Total assets Current liabilities Total liabilities Loss to common shareholders Share price Weighted average number of common shares Le Chteau $116,724 168,490 36,038 108,136 (35,745) $0.27 29,964 Reitmans $319,362 542,083 121,172 160,915 (24,703) $3.96 64,079 For each company, calculate the following values and ratios. Where available, industry averages are included in parentheses. (Round basic earnings per share to 2 decimal places, e.g. 5.25 and round all other amounts to 1 decimal places, e.g. 5.2 or 5.2%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for not applicable amounts.) 1.Working capital (n/a) 2.Current ratio (1.8:1) 3.Debt to total assets (57%) 4.Basic earnings per share (n/a) 5.Price-earnings ratio (20.0 times) working capital current ratio debit to total assets basic earnings per share price-earnings ratio Le Chateau $__________ ______;1 _% $_______ times Reitman's S____ ____;1 ___% S____ times. Compare the liquidity, solvency, and profitability of the two companies and their industry. (If a comparison cannot be made, enter Not Meaningful as the answer.) Below fill out the profitability of the two companies decides whether it is more or less liquid: Liquidity solvency profitability Liquidity Solvency Le Chateau Profitability Is it more liquid or less liquid Is it more liquid or less liquid Is it more liquid or less liquid Below fill out the comparison with industry and decides whether it is better or worse than the industry average: Le Chateau Worse or better than industry average Worse or better than industry average Reitmans Worse or better than industry average Is it more liquid or less liquid Is it more liquid or less liquid Is it more liquid or less liquid Reitmans Worse or better than industry average Worse or better than industry average Worse or better than industry average

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