This problem uses the same data as problem, but it can be solved independently. Price-Break and Low-Cost are both discount store chains. Condensed income statements and balance sheets for the two companies are shown in Exhibit. Amounts are in thousands.

Additional information follows:
€¢ Cash dividends per share: Price-Break, $2.10; Low-Cost, $1.50
€¢ Market price per share: Price-Break, $50; Low-Cost, $35
€¢ Average shares outstanding for 20X9: Price-Break, 15 million; Low-Cost, 8 million
1. Compute the following ratios for both companies for 20X9:
(a) Current,
(b) Quick,
(c) Accounts receivable turnover,
(d) Inventory turnover,
(e) Total-debt-to-total-assets,
(f) Total-debt-to-total-equity,
(g) ROE,
(h) Gross profit rate,
(i) Return on sales,
(j) Total asset turnover,
(k) Pretax return on assets,
(l) EPS, (m) P-E,
(n) Dividend-yield,
(o) Dividend-payout.
Total debt includes all liabilities. Assume all sales are on credit.
2. Compare the liquidity, solvency, profitability, market price, and dividend ratios of Price-Break with those ofLow-Cost.

INCOME STATEMENTS Price-Break Low-Cost Year Ended December 31, 20x9 Sales Cost of sales Gross profit Operating expenses Operating income Other revenue (expense) Pretax income Income tax expense Net income $905,600 602,360 303,240 184,130 119,110 (21,930) 97,180 38,870 58,310 $491,750 301,910 189,840 147,160 42,680 6,270 48,950 19,580 29,370 BALANCE SHEETS Price-Break Low-Cost December 31 December 31 20X9 20X8 20X9 20X8 Assets Current assets Cash 9,100 10,700 $ 8,200 6,900 3,800 36,700 37,100 21,300 20,500 155,600 149,400 105,100 106,600 8,400 226,800 222,400 147,500 146,200 461,800 452,300 287,600 273,500 14,700 13,900 28,600 27100 $703,300 $688,600 $463,700 $446,800 Marketable securities 8,300 8,300 4,100 Accounts receivable Inventories Prepaid expenses 17,100 16,900 8,800 Total current assets Property and equipment, net Other assets Total assets Liabilities and stockholders equity Liabilities Current liabilities (summarized) Long term debt Total liabilities Stockholders' equity Total liabilities and 91,600 93,700 $61,300 58,800 21,000 248,300 250,400 82,300 79,800 455,000 438.200 381,400 367,000 156.700 156.700 21,000 stockholders' equity $703,300 $688,600 $463,700 $446,800