Transactions Oct. 1 7 13 8 Sales Invoice No. 16 to U. Makinmoenay, $760 for services...

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Transactions Oct. 1 7 13 8 Sales Invoice No. 16 to U. Makinmoenay, $760 for services performed, plus HST. 29 Cheque Copy No.08, Imyolandlord, payment for monthly rent $2,000 plus HST. 17 Cash Sales Slip 31 Purchase Invoice From Superior Printing, $315 for office supplies plus HST. 31 22 Cheque Copy Nov. 20 Cash Receipt From Y. Ahigotpaid, $1,400 payment on account. No. 08 to Ms. Singh, $1,195.60 plus HST. No. 09 to Ms. Wonder, $2,125 for personal use. Cheque Copy No. 10 to Killerwaves Mobile for payment of telephone bill, $170 plus HST. Bank Debit Memo $45.00 for a bank service charge (no HST). Bank Credit Memo $125 for interest paid to Ms. Wonder for money held in the account. Cheque Copy The balances in the HST accounts for the previous period were: HST Recoverable $1,900 and HST Payable $4,420. E18-13 The Serial Exercise involves a company that will be revisited throughout relevant chapters in Volume 1 and Volume 2. You can complete the Serial Exercise using MyLab Accounting. This exercise continues the Canyon Canoe Company situation from Chapter 170.- Students do not have to complete prior exercise in order to answer this question. The company wants to invest some of its excess cash in trading securities and is considering two investments, Paddle Company (PC) and Recreational Life Vests (RLV). The income statement, balance sheet, and other data for both companies follow for 2024 and 2023 as well as selected data for 2022: Income Statement Net sales revenue Cost of goods sold Gross margin Operating expenses Operating Income Interest expense Income before income tax Income tax expense Net Income Balance Sheet Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Long-term assets Total assets Comparative Financial Statements For the Years Ended December 31 2022 2024 2023 $430,489 $425,410 258,756 256,797 171,733 168,613 153,880 151,922 17,853 16,691 865 788 16,988 15,903 5,137 4,809 $ 11,851 $ 11,094 $ 69,159 $ 70,793 44,798 44,452 $44,104 79,919 66,341 76,363 15,494 16,264 209,370 197,850 89,834 90,776 $299,204 $288,626 $276,482 Liabilities Current liabilities Long-term liabilities Total liabilities Shareholders' Equity Common shares Retained earnings Total shareholders equity Total liabilities and shareholder's equity $299,204 $288,626 Other Data $ 69,554 $ 60,232 31,682 29,936 101,236 90,168 72,795 80,885 125,173 117,573 197,968 198,458 197,668 Comparative Financial Statements For the Years Ended December 31 2024 2022 $410,570 299,110 111,460 78,290 33,170 2.780 30,390 8,780 $ 21,610 2023 $383,870 280,190 103,680 $ 65,730 39,810 68,500 70,830 32,850 2,980 29,870 8,630 $215,240 $ 55,270 38,650 65,230 24,450 37,630 198,490 196,780 116,760 116,270 $315,250 $313,050 $310,640 $ 90,810 $ 90,010 96,310 105,890 187,120 195,900 $ 36,460 59,930 111,530 102,480 16,600 14,670 128,130 117,150 103,840 $315,250 $313,050 Liabilities Current liabilities Long-term liabilities Total liabilities Shareholders' Equity Common shares Retained earnings $ 69,554 $ 60,232 31,682 29,936 101,236 90,168 72,795 80,885 125,173 117,573 Total shareholders' equity 197,968 Total liabilities and shareholder's equity $299,204 $288,626 Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding S 21.38 $ 0.32 9,000 198,458 197,668 33.82 0.30 8,000 $ 90,810 96,310 187,120 111,530 16,600 128,130 $315,250 $ 46.37 0.53 9,000 $ 90,010 105,890 195,900 102,480 14,670 117,150 $313,050 $ 51.64 0.45 8,000 103,840 1. Using the financial statements given, compute the following ratios for both companies for 2024 and 2023. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio b. Inventory turnover c. Accounts receivable turnover d. Gross margin percentage e. Debt ratio f. Return on assets g. Return on common shareholders' equity h. Earnings per share i. Price-earnings ratio j. Dividend yield 2. Compare the companies' performance for 2024 and 2023. Make a recommendation to Canyon Canoe Company about investing in these companies. Which company would be a better investment, Paddle Company or Recreational Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. Transactions Oct. 1 7 13 8 Sales Invoice No. 16 to U. Makinmoenay, $760 for services performed, plus HST. 29 Cheque Copy No.08, Imyolandlord, payment for monthly rent $2,000 plus HST. 17 Cash Sales Slip 31 Purchase Invoice From Superior Printing, $315 for office supplies plus HST. 31 22 Cheque Copy Nov. 20 Cash Receipt From Y. Ahigotpaid, $1,400 payment on account. No. 08 to Ms. Singh, $1,195.60 plus HST. No. 09 to Ms. Wonder, $2,125 for personal use. Cheque Copy No. 10 to Killerwaves Mobile for payment of telephone bill, $170 plus HST. Bank Debit Memo $45.00 for a bank service charge (no HST). Bank Credit Memo $125 for interest paid to Ms. Wonder for money held in the account. Cheque Copy The balances in the HST accounts for the previous period were: HST Recoverable $1,900 and HST Payable $4,420. E18-13 The Serial Exercise involves a company that will be revisited throughout relevant chapters in Volume 1 and Volume 2. You can complete the Serial Exercise using MyLab Accounting. This exercise continues the Canyon Canoe Company situation from Chapter 170.- Students do not have to complete prior exercise in order to answer this question. The company wants to invest some of its excess cash in trading securities and is considering two investments, Paddle Company (PC) and Recreational Life Vests (RLV). The income statement, balance sheet, and other data for both companies follow for 2024 and 2023 as well as selected data for 2022: Income Statement Net sales revenue Cost of goods sold Gross margin Operating expenses Operating Income Interest expense Income before income tax Income tax expense Net Income Balance Sheet Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Long-term assets Total assets Comparative Financial Statements For the Years Ended December 31 2022 2024 2023 $430,489 $425,410 258,756 256,797 171,733 168,613 153,880 151,922 17,853 16,691 865 788 16,988 15,903 5,137 4,809 $ 11,851 $ 11,094 $ 69,159 $ 70,793 44,798 44,452 $44,104 79,919 66,341 76,363 15,494 16,264 209,370 197,850 89,834 90,776 $299,204 $288,626 $276,482 Liabilities Current liabilities Long-term liabilities Total liabilities Shareholders' Equity Common shares Retained earnings Total shareholders equity Total liabilities and shareholder's equity $299,204 $288,626 Other Data $ 69,554 $ 60,232 31,682 29,936 101,236 90,168 72,795 80,885 125,173 117,573 197,968 198,458 197,668 Comparative Financial Statements For the Years Ended December 31 2024 2022 $410,570 299,110 111,460 78,290 33,170 2.780 30,390 8,780 $ 21,610 2023 $383,870 280,190 103,680 $ 65,730 39,810 68,500 70,830 32,850 2,980 29,870 8,630 $215,240 $ 55,270 38,650 65,230 24,450 37,630 198,490 196,780 116,760 116,270 $315,250 $313,050 $310,640 $ 90,810 $ 90,010 96,310 105,890 187,120 195,900 $ 36,460 59,930 111,530 102,480 16,600 14,670 128,130 117,150 103,840 $315,250 $313,050 Liabilities Current liabilities Long-term liabilities Total liabilities Shareholders' Equity Common shares Retained earnings $ 69,554 $ 60,232 31,682 29,936 101,236 90,168 72,795 80,885 125,173 117,573 Total shareholders' equity 197,968 Total liabilities and shareholder's equity $299,204 $288,626 Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding S 21.38 $ 0.32 9,000 198,458 197,668 33.82 0.30 8,000 $ 90,810 96,310 187,120 111,530 16,600 128,130 $315,250 $ 46.37 0.53 9,000 $ 90,010 105,890 195,900 102,480 14,670 117,150 $313,050 $ 51.64 0.45 8,000 103,840 1. Using the financial statements given, compute the following ratios for both companies for 2024 and 2023. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio b. Inventory turnover c. Accounts receivable turnover d. Gross margin percentage e. Debt ratio f. Return on assets g. Return on common shareholders' equity h. Earnings per share i. Price-earnings ratio j. Dividend yield 2. Compare the companies' performance for 2024 and 2023. Make a recommendation to Canyon Canoe Company about investing in these companies. Which company would be a better investment, Paddle Company or Recreational Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment.

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