Question Help * Assume you are purchasing an investment and decide to invest in

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Question Help * Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Skyview, Inc., or Vista Corp. You assemble the following selected data (Click the icon to view the income statement data) Click the con to vew dat end of current year. athe icon to view data at beginning of current year.)(Click the icon to view more it mation ) Read the requirement a. Quick ratio Select the formula and then enter the amounts to compute the quick ratio far each company Round the ratios to two decimal places, X.XX Quick ratio Skyview, Inc Vista, Corp b. Debt ratio Select the formula and then enter the amounts to compute the debt ratio for each company. (Round the ratios as percentages rounded to the nearest hundredth percent. XXX%) Debt ratio Skyview, Inc Vista, Corp G-Interest coverage ratio Select the formula and then enter the amounts to compute the interest coverage ratio for each company (Round the ratios to two decimal places) Skyview, Inc Vista, Corp d. Accounts receivable burmover Select the formula and then enter the amounts to compute the accounts recelvable tumover ratio for each company. (Round the ratios to two decimal places.) mes Skyview, Inc Vista, Corp e. Inventory tunover Select the formula and then enter the amounts to compute the inventory turnover for each company. Round the ratios to two decimal places) mes Inventory burnover Skyview, Inc Vista, Corp f, Total asset burnover Select the formula and then enter the amounts to compute the lotal asset turmover for each company (Round the ratios to two decimal places) mes Totalasset turnover Skyview, Inc Vista, Corp g. Return on assets Select the formula and then enter the amounts to compute the return on assets for each company. (Round the ratios as percentages rounded to the nearest imes hundredth percent. X.XX%.) Return on assets Skyview, Inc Vista, Corp h. Return on equity

Explanation / Answer

cash+shrt term invt+acc recivable /current laib QUICK RATIO 13000 40000 48000 57000 1.77193 27000 29000 34000 70000 1.285714 TOTAL ASSET/TOTAL LAIB DEBT RATIO 359000 185000 1.940541 365000 200000 1.825 EBIT/INTEREST EXPENSE INT. COVERAGE RATIO 177000 13000 13.61538 162000 15000 10.8 NET SALE/AVERAGE AR ACC RECV TURNOVER AVG AR = OPENING+CLOSING/2 421000 43500 9.678161 48000+39000/2 400000 41000 9.756098 51000+31000/2 COGS/ AVG INVENT AVG INV 238000 133000 1.789474 (131000+135000)/2 202000 132000 1.530303 (136000+128000)/2 NET SALES/ AVG TOTAL ASSET AVF TOTAL ASSET 421000 323500 1.301391 (359000+288000)/2 400000 359000 1.114206 (365000+353000)/2 NET INC/ AVG T.A. ROA 119000 323500 0.367852 106000 359000 0.295265 NET INC/ AVG Shareholder equity ROE avg sh equity 119000 165500 0.719033 (157000+174000)/2 106000 159500 0.664577 (154000+165000)/2 net inc/ no. of share eps 119000 20000 5.95 106000 11000 9.636364 market price of share/ eps PE ratio 58 5.95 9.747899 50 9.636364 5.188679

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