Compute the various ratios for each company

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Reference no: EM131908209

Problem

As loan analyst for Utrillo Bank, you have been presented the following information.

	Toulouse Co.	Lautrec Co.
Assets
Cash	$111,600	$312,200
Receivables	215,000	304,800
Inventories	575,500	518,400
Total current assets	902,100	1,135,400
Other assets	494,200	612,300
Total assets	$1,396,300	$1,747,700
Liabilities and Stockholders' Equity
Current liabilities	$302,600	$349,600
Long-term liabilities	393,000	494,200
Capital stock and retained earnings	700,700	903,900
Total liabilities and stockholders' equity	$1,396,300	$1,747,700
Annual sales	$950,100	$1,491,700
Rate of gross profit on sales	30%	40%

Each of these companies has requested a loan of $50,560 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted.

Compute the various ratios for each company.

Reference no: EM131908209

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