Peele Inc. has hired you as an analyst to assist with making an investment decision. The choice has been narrowed down to two companies, and a decision must be made on which of the two Peele Inc. should invest in. The two companies, Company 1 and Company 2, operate in the same industry. The most recent full-year financial statements are provided for Company 1 and Company 2 for the 31 December 20X5 year-ends.

Required:
1. Calculate and interpret the following ratios: quick ratio, accounts receivable turnover, inventory turnover, total debt to equity, return on total assets after tax, return on equity, times interest earned. Round to two decimal places.
2. Prepare a vertical analysis on the statements of comprehensive income. Round to one decimal place.
3. Recommend an investment choice for Peele Inc.

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Statements of Financial Position Cash Accounts receivable, net Inventories Prepaid expenses Property, plant, and equipment, net Company 1 $ 95,000 19,000 44,000 10,000 1,400,000 1,568,000 Company 2 $ 45,000 32,000 74,000 12,000 1,900,000 2,063,000