Assume that you are purchasing an investment and have decided to invest in a company in the publishing business. You have narrowed the choice to Thrifty Nickel Corp. and The Village Cryer Limited and have assembled the following data.

Selected income statement data for the current year:

Your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially. Assume that you have analyzed all other factors and your decision depends on the results of ratio analysis.
{Requirement}
Compute the following ratios for both companies for the current year, and decide which company's shares better fit your investment strategy:

a. Quick (acid-test) ratio

b. Inventory turnover

c. Days' sales in average receivables

d. Debt ratio

e. Times-interest-earned ratio

f. Return on equity g. Earnings per share h. Price/earnings ratio

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Net sales (all on credit).. Cost of goods sold. Income from operations. Interest expense... Net income.... Thrifty Nickel Village Cryer Selected balance sheet data at beginning of the current year: Current receivables, net. Inventories Total assets: Long-term debt Preferred shares: $5.00 (200 shares) issued. Common shares: (10,000 shares). (5,000 shares). Total shareholders' equity. $371,000 $497,000 209,000 258,000 79,000 138,000) 19,000 48,000 72,000 Thrifty Nickel Village Cryer $ 40,000 $ 48,000 93,000 88,000 259,000 270,000 86,000 20,000 10,000 12,500 118,000 126,000 Selected balance sheet and market price data at end of the current year: