Please use the following data for Questions 26-35 (for ratios involving balance
ID: 2631612 • Letter: P
Question
Please use the following data for Questions 26-35 (for ratios involving balance sheet items, use the end of year value:
Firm A Firm B
(in $000s)
Cash 5,500 12,500
Accounts Receivable 4,000 6,500
Inventory 9,500 11,000
Current Assests 19,000 30,000
Porperty & Equipment (Net) 12,000 18,000
Other Assests 8,000 12,000
Total Assets 39,000 60,000
Current Liabilities 9,000 12,000
Long Term Debt 4,000 10,000
Common Stock 12,000 30,000
Retained Earnings 14,000 8,000
Total Liabilities and Equity 39,000 60,000
Sales Revenue 70,000 120,000
Costs of goods sold 50,000 95,000
Net sales revenue 20,000 25,000
Operating expenses 16,000 18,000
EBIT 4,000 7,000
Net Income 2,000 3,000
Shares outstanding (000s) 1,000 4,000
a.Firm A
b.Firm B
c.Can
Explanation / Answer
a.Firm A
a.Firm A
c.Can