Calculate the return on assets and the return on shareholders' equity for both companies. (Round answers to 1 decimal place, e.g. 15.1%)
Cool Brewery
Northern Beer
Return on assets
Return on shareholders' equity
eTextbook and Media
Calculate the debt to equity ratio for both companies at the end of 2020. (Round answers to 2 decimal places, e.g. 0.84)
Cool Brewery
Northern Beer
Debt to equity ratio
eTextbook and Media
Textbook 1
eTextbook 2
Assistance Used
Calculate the net debt as a percentage of total capitalization for both companies. (Round answers to 1 decimal place, e.g. 15.1%)
Cool Brewery
Northern Beer
(Common-size analysis and differences in profitability and leverage)
Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands):
Cool Brewery Ltd.
Northern Beer Ltd.
2020
2019
2020
2019
Net sales
$212,100
$37,750
Cost of goods sold
104,040
15,320
Operating expenses
78,070
15,480
Interest expense
7,230
390
Income tax expense
4,440
1,250
Cash
11,980
$10,390
4,840
$2,490
Other current assets
84,680
74,440
7,750
7,250
Long-term assets (net)
204,020
203,950
27,170
33,090
Current liabilities
73,580
65,740
4,190
3,770
Long-term liabilities
95,700
118,660
8,090
7,400
Share capital
49,900
45,100
18,800
18,100
Retained earnings
81,500
59,280
8,680
13,560
Prepare a common-size analysis for 2020 for Cool Brewery Ltd. and Northern Beer Ltd. (Round percentage answers to 1 decimal place, e.g. 15.1%)
Cool Brewery
Northern Beer