Financial fact sheet for scarlett company

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Reference no: EM13838940

Before you start: Study the Financial Fact Sheet for Scarlett Company and Gable Company.

I. Complete the ratios in the table below for Scarlett Company and Gable Company, based on the financial information in the Fact Sheet. The spaces expand as you type.

Ratios

Scarlett Company

Gable Company

1.    Current Ratio

 

 

2.    Acid-Test Ratio

 

 

3.    Accounts (and notes) receivable turnover

 

 

4.    Inventory Turnover

 

 

5.    Days' sales in inventory

 

 

6.    Days' sales uncollected

 

 

II. Credit risk analysis based on short term:Please identify which company you feel isthe better short term credit risk and state your reasons why. Be specific! Details!

III. Please complete the second set of factors for Scarlett Company and Gable Company. Note: each company paid a dividend of $3; in addition, the stock of each company can be bought at $25 per share.

Factors

Scarlett Company

Gable Company

1.    Profit margin ratio

 

 

2.    Total asset turnover

 

 

3.    Return on total assets

 

 

4.    Price-earnings ratio

 

 

5.    Dividend yield

 

 

IV. Which company do you feel to be the best investment? State your reasons why. Be specific! Details!

Attachment:- Alang_Module10_Ratios_091115.xlsx

Reference no: EM13838940

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