Financial Statement Analysis Through Ratios The current year financial statements for two companies is presented below. Blue Water Prime Fish 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: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 41,600 41,000 96,000 149,000 84,609 $ 412,200 $ 96,000 69,200 152,200 29,609 65,200 5 412,200 $ 20,400 32,800 43,600 408,280 311,000 5 816,000 $ 58,000 61,280 518,000 106,600 72,200 $ 816,000 $ 438,080 (238,000) (162,200) $ 37,800 $ 796,000 (400,600) (311,600 $ 83,880 $ 22.6 30% 33,600 $ 21 30% $ 151,000 $ Both companies are in the fish catching and manufacturing business Roth hur Solvency ratios 14 Times interest eamed ratio 15 Cash coverage ratio 16. Debt/equity ratio Market ratios 17 Pricelearnings ratio Dividend yield ratio 18 % %