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 per value) Additional paid-in capital Retained earnings Total Habilities 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 96,000 149,00 84,600 $412,200 $ 96,000 69,200 152,200 29,500 65,200 $ 412,200 $ 20,400 32,see 43,600 488,200 311,000 $ 816,000 $ 58,000 61,200 518,00 106,600 72,200 $ 816,000 $ 438,000 (238,000) (162,200) 5 37 300 $ 796,000 (400, 600 (311,600 $ 83,800 5 22.6 30% $33,600 $ 21 sex $ 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 Required: 8. 6. Quality of income Asset turnover ratios: 7. Total asset turnover Fixed asset turnover 9. Receivable turnover 10. 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 Pricelearnings ratio 18. Dividend yield ratio % %