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

l.

Price/earnings 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

Oar

Company or

Floatsy

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.

The Oar Company Floatsy 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 $ 430,268 $ 425,350 $ 410,120 $ 383,550 Cost of Goods Sold 258,145 256,790 299,890 280,010 Gross Profit 172,123 168,560 110,230 103,540 Operating Expenses 153,330 151,082 78,500 70,720 Operating Income 18,793 17,478 31,730 32,820 Interest Expense 810 790 2,750 2,950 Income before Income Tax 17,983 16,688 28,980 29,870 Income Tax Expense 5,104 4,180 8,770 8,690 Net Income $ 12,879 $ 12,508 $ 20,210 $ 21,180 Balance Sheet Assets Cash and Cash Equivalents $ 69,240 $ 70,415 $ 65,749 $ 54,810 Accounts Receivable 44,760 44,500 $ 44,180 39,820 38,610 $ 36,430 Merchandise Inventory 79,870 66,350 76,360 68,600 65,210 59,960 Other Current Assets 15,470 16,625 24,231 38,120 Total Current Assets 209,340 197,890 198,400 196,750 Long-term Assets 90,640 90,670 116,870 116,316 Total Assets $ 299,980 $ 288,560 $ 276,346 $ 315,270 $ 313,066 $ 310,700 Liabilities Current Liabilities $ 69,520 $ 60,220 $ 90,880 $ 90,030 Long-term Liabilities 31,610 29,900 96,340 105,930 Total Liabilities 101,130 90,120 187,220 195,960 Stockholders' Equity Common Stock 72,830 80,840 111,490 102,430 Retained Earnings 126,020 117,600 16,560 14,676 Total Stockholders' Equity 198,850 198,440 197,630 128,050 117,106 103,870 Total Liabilities and Stockholders' Equity $ 299,980 $ 288,560 $ 315,270 $ 313,066 Stockholders Equity Other Data Market price per share $ 21.58 $ 33.52 $ 46.66 $ 51.38 Annual dividend per share 0.35 0.34 0.46 0.39 Weighted average number of shares outstanding 8,800 7,300 8,800 7,300