Question: Take the role of an investment analyst
Take the role of an investment analyst at Cole Binder. It is your job to recommend investments for your client. The only information you have is the following ratio values for two companies in the graphics software industry:
Write a report to the Cole Binder investment committee. Recommend one company’s stock over the other. State the reasons for your recommendation.
Transcribed Image Text:
Tower.org Graphics Imaging Ratio Days' sales in receivables. Inventory turnover. Gross profit percentage. Net income as a percent of sales. Times interest earned Return on equity. 41 48 7 11 67% 58% 12% 13% 19 13 35% 30% Return on assets.. 14% 19% .....
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> Crogan Products Company reported the following stockholders’ equity on its balance sheet: Requirements 1. What caused Crogan’s preferred stock to decrease during 2017? Cite all possible causes. 2. What caused Croga
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> Raintree Marketing Corporation reported the following stockholders’ equity at December 31 (adapted and in millions): Common stock.................................. $ 365 Additional paid-in capital...................... 286 Retained earnings...........
> Patterson Software had the following selected account balances at December 31, 2016 (all numbers and amounts are in thousands, except par value per share): Requirements 1. Prepare the stockholders’ equity section of Patterson Softwar
> Mike Magid Toyota is an automobile dealership. Magid’s annual report includes Note 1—Summary of Significant Accounting Policies as follows: Bay Area Nissan, a competitor of Mike Magid Toyota, includes
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> Use the York Company data in E10-34A to show how the company reported cash flows from financing activities during 2016 (the current year). From E10-34A Payment of long-term debt . $17,075 Dividends paid.. ... $ 205 Pro
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> On January 14, Roland Corporation issued 100,000 shares of its $0.01 par-value common stock for the market price of $13.50 per share. Attorney Christie Mann invoiced Roland Corporation for $28,000 and has agreed to accept 2,000 shares of its $0.01 par-va
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> Use the Gagnon, Inc., balance-sheet data to answer the following questions. 1. Compute Gagnon, Inc.’s, quick (acid-test) ratio at December 31, 2016, and 2015. 2. Use the comparative information from the table given for Horner, Inc., I
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> Prudhoe Bay Oil Co. is having its initial public offering (IPO) of company stock. To create public interest in its stock, Prudhoe Bay’s chief financial officer has blitzed the media with press releases. One in particular caught your eye. On November 19, P
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> At December 31, 2016, Sidestep Corporation reported the stockholders’ equity accounts shown here (with dollar amounts in millions, except per-share amounts). Common stock $1.00 par value per share, 26 million shares issued……………………………....................
> During 2016, Advantage Corporation earned net income of $5.8 billion and paid off $2.7 billion of long-term notes payable. Advantage raised $1.4 billion by issuing common stock, paid $3.0 billion to purchase treasury stock, and paid cash dividends of $1.
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