Financial Statement Analysis Through Ratios The current year financial statements for two companies is presented below. Blue Water Peine 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 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 34,660 5 412,200 $ 96,000 69,200 152,200 29,600 65,269 5412,200 $ 20,400 32,800 43,600 408,200 311.000 5816.000 $ 58,00 61,200 51a,000 106.500 72,200 S316,000 $430,000 (238,000) (162,200 537,800 5.796,000 (400,600) (311,600) $33,300 5 30% $ 33.600 $ 21 30% $ 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 a its president has said, "We avoid what we consider to be undue risk"Neither company is publicly held. 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 RR 5 % % % Profitability ratios 1 Return on equity 2 Return on assets 3 Gross profil 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 Receivable turnover 10 Inventory tumover 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/samnings ratio 18 Dividend yield ratio