Question: please help me out with this question ill give a thumbs up please and great feed back Company wants to invest some of its excess
please help me out with this question ill give a thumbs up please and great feed back
Company wants to invest some of its excess cash in trading securities and is considering two investments, The Company () and Life Vests (). The income statement, balance sheet, and other data for both companies follow for and , as well as selected data for :
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| The Row Company | Kiddie Life Vests | ||||||||
| Comparative Financial Statements | Comparative Financial Statements | ||||||||
| Years Ended December 31, | Years Ended December 31, | ||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||
| Income Statement | |||||||||
| Net Sales Revenue | $430,642 | $425,440 | $410,830 | $383,120 | |||||
| Cost of Goods Sold | 258,854 | 256,392 | 299,890 | 280,670 | |||||
| Gross Profit | 171,788 | 169,048 | 110,940 | 102,450 | |||||
| Operating Expenses | 153,220 | 151,853 | 78,050 | 70,950 | |||||
| Operating Income | 18,568 | 17,195 | 32,890 | 31,500 | |||||
| Interest Expense | 800 | 725 | 2,770 | 2,970 | |||||
| Income before Income Tax | 17,768 | 16,470 | 30,120 | 28,530 | |||||
| Income Tax Expense | 5,115 | 4,850 | 8,780 | 8,640 | |||||
| Net Income | $12,653 | $11,620 | $21,340 | $19,890 | |||||
| Balance Sheet | |||||||||
| Assets | |||||||||
| Cash and Cash Equivalents | $68,340 | $70,283 | $65,351 | $55,250 | |||||
| Accounts Receivable | 44,800 | 44,440 | $44,170 | 39,880 | 38,670 | $36,400 | |||
| Merchandise Inventory | 79,900 | 66,330 | 76,370 | 68,580 | 65,210 | 59,920 | |||
| Other Current Assets | 16,340 | 16,807 | 24,609 | 37,660 | |||||
| Total Current Assets | 209,380 | 197,860 | 198,420 | 196,790 | |||||
| Long-term Assets | 89,944 | 90,624 | 116,810 | 119,924 | |||||
| Total Assets | $299,324 | $288,484 | $276,890 | $315,230 | $316,714 | $310,580 | |||
| Liabilities | |||||||||
| Current Liabilities | $69,560 | $60,260 | $90,830 | $90,050 | |||||
| Long-term Liabilities | 31,680 | 29,930 | 96,300 | 105,900 | |||||
| Total Liabilities | 101,240 | 90,190 | 187,130 | 195,950 | |||||
| Stockholders' Equity | |||||||||
| Common Stock | 72,790 | 80,880 | 111,500 | 102,450 | |||||
| Retained Earnings | 125,294 | 117,414 | 16,600 | 18,314 | |||||
| Total Stockholders' Equity | 198,084 | 198,294 | 197,640 | 128,100 | 120,764 | 103,890 | |||
| Total Liabilities and | |||||||||
| Stockholders' Equity | $299,324 | $288,484 | $315,230 | $316,714 | |||||
| Other Data | |||||||||
| Market price per share | $21.38 | $33.52 | $45.88 | $51.64 | |||||
| Annual dividend per share | 0.33 | 0.31 | 0.45 | 0.38 | |||||
| Weighted average number of shares outstanding | 8,500 | 7,000 | 8,500 | 7,000 | |||||




well as selected data for 2023 (Click the icon to view the data.) Read the requirements. Requirement 1. Compute each ratio for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio Begin by selecting the correct formula. Current ratio = Total current assets Total current liabilities Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, XXXX.) b. Cash ratio Begin by selecting the correct formula. Cash ratio =( Cash + Cash equivalents ) Total current liabilities Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) c. Inventory turnover Begin by selecting the correct formula. Requirements 1. Using the financial statements given, compute the following ratios for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio b. Cash ratio c. Inventory turnover d. Accounts receivable turnover e. Gross profit percentage f. Debt ratio g. Debt to equity ratio h. Profit margin ratio i. Asset turnover ratio j. Rate of return on common stockholders' equity k. Earnings per share I. Pricelearnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2025 and 2024 . Make a recommendation to Water Way Company about investing in these companies. Which company would be a better investment, The Row Company or Kiddie Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. c. Inventory turnover Begin by selecting the correct formula. Inventory turnover= Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, .. .) Nato tohlo Mata tahle
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