Question: Using the financial statements given, compute the following ratios for both companies for 2 0 2 6 and 2 0 2 5 . Assume all
Using the financial statements given, compute the following ratios for both companies for
and 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
l Priceearnings ratio
m Dividend yield
n Dividend payout
Compare the companies' performance for and Make a recommendation to
Nature Gnome Company about investing in these companies. Which company would be a
better investment, The Oar Company or Very Life Vests? Base your answer on ability to
pay current liabilities, ability to sell merchandise and collect receivables, ability to
pay long term debt profitibility and attractiveness as an investment
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