Alternate Problem Chapter Seventeen Following are data from the statements of two companies selling similar products: Current Year-End Balance Sheets Zip Company Cash Notes receivable-short-term Accounts receivable, net.... Inventory. Prepaid expenses. Total assets XPlant and equipment, net Current liabilities. Mortgage payable.. Common stock, $10 par value Retained earnings. Total liabilities and stockholders' equity.. Sled Company $11,900 $ 20,000 7,700 3,200 42,000 64,000 58,800 87,680 1,680 3,520 232,120 274,400 $354,200 $452,800 $ 56,000 $ 80,000 70,000 140,000 80,000 160,000 88,200 132,800 $354.200 $452,800 Data from the Current Year's Income Statement Sales........ $672,000 $880,000 Cost of goods sold. 528,080 699,840 Interest expense. 4,200 Net income. 23,373 5,600 28,896 Beginning-of-Year Data Inventory $ 53,200 $ 85,120 Total assets 345,800 Stockholders' equity. 217,000 443,200 285,120 Required: 1. Calculate current ratios, acid-test ratios, inventory turnovers, and days' sales uncollected for the two companies. Then state which company you think is the better short-term credit risk and why. $ 2. Calculate return on total assets employed and return on stockholders' equity. Then, under the assumption that each company's stock can be purchased at book value, state which company's stock you think is the better investment and why. 17-12