d. Accounts receivable (AR) turnover Begin by selecting the correct formula. AR turnover = Net credit sales + Average net accounts receivable Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year AR turnover 2025 AR turnover 2024 PC RLV Income The Paddle Company Comparative Financial Statements Recreational Life Vests Comparative Financial Statements Years Ended December 31, Years Ended December 31, 2025 2024 2023 2025 2024 Statement Net Sales Revenue $430,489 $425,410 $410,570 $383,870 Cost of Goods 258,756 256,797 299,110 280,190 Sold Gross Profit 171,733 168,613 111,460 103,680 Operating 153,880 151,922 78,290 70,830 Expenses Operating Income 17,853 16,691 33,170 32,850 Interest Expense 865 788 2,780 2,980 Income before Income Tax 16,988 15,903 30,390 29,870 2023 Income Tax 16,988 15,903 30,390 29,870 Income Tax Expense 5,137 4,809 8,780 8,630 $ 11,851 $ 11,094 $ 21,610 $ 21,240 Net Income Balance Sheet Assets Cash and Cash Equivalents $ 69,159 $ 70,793 $ 65,730 $55,270 Accounts Receivable 44,798 44,452 $ 44,104 39,810 38,650 $ 36,460 Merchandise Inventory 79,919 66,341 76,363 68,500 65,230 59,930 Other Current 15,494 16,264 24,450 37,630 Assets Total Current Assets 209,370 197,850 198,490 196,780 Long-term 89,834 90,776 116,760 116,270 Assets 89,834 90,776 116,760 116,270 Assets $299,204 $288,626 $315,250 $313,050 Total Assets $276,482 $310,640 Liabilities Current Liabilities $ 69,554 $ 60,232 $ 90,810 $ 90,010 Long-term Liabilities 31,682 29,936 96,310 105,890 Total Liabilities 101,236 90,168 187,120 195,900 Stockholders' Equity Common Stock 72,795 80,885 111,530 102,480 Retained 125,173 117,573 Earnings 16,600 14,670 Total Stockholders' 197,968 198,458 128,130 117,150 Equity 197,668 103,840 Total Liabilities and Stockholders' Equity $299,204 $288,626 $315,250 $313,050 Stockholders' Equity $299,204 $288,626 $315,250 $313,050 Other Data Market price per share $ 21.38 $ 33.82 $ 46.37 $ 51.64 Annual dividend per share 0.32 0.30 0.53 0.45 Weighted average number of shares outstanding 9,000 8,000 9,000 8,000