Comparative statement data for Farris Company and Raizlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2019, and December 31, 2018
- Prepare a vertical analysis of the 2019 income statement data for Farris company and Ratzlaff Company in columnar form
- Comment on the relative profitablity of the companies by return on assets and the return on common stockholder's equity for both companies
The comparative statements of Painter Tool Company are presented below
All sales were on account.
Compute the following ratios for 2020. (Weighted-average common shares in 2020 were 57,000.)
- Earnings per share
- Return on common stockholder' equity
- Return on assets
- Current ratio
- Acid-test ratio
- Accounts receivable turnover
- Inventory turnover
- Times interest earned
- Asset turnover.
- Debt to assets ratio
Financial information for Messersmith Company is presented below
- Inventory at the beginning of 2019 was $118,000
- Total Assets at the beginning of 2019 were $630,000.
- No common stock transactions occurred during 2019 or 2020
- All sales wer on account. Accounts receivable, net at the beginning of 2019, were $88,000.
- Notes payable are classified as current liabilities.
- Indicate, by using ratios, the change in liquidity and profitability of Meassersmith Company from 2019 to 2020.
- Given below are theree independent situation and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2020, and (2) as of December 31, 2021, after giving effect to the situation. Net income for 2021 was $50,000. Total assets on December 31, 2021, were $700,000