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2. Following are data from the statements of two companies soling similar products: Current Year-End Balance Sheets Cash Notes receivable short-term, Accounts receivable, net... Inventory.

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2. Following are data from the statements of two companies soling similar products: Current Year-End Balance Sheets Cash Notes receivable short-term, Accounts receivable, net... Inventory. Prepaid expenses Plant and equipment, net Total assets. Dodger Company $ 21,900 7,700 42,000 58,800 1,880 202.120 $334 200 Brave Company $ 20,000 3,200 64,000 87.680 1,520 274.400 $450.800 Current liabilities Mortgage payable Common stock, $10 par value Retained eamings. Total liabilities and stockholders' equity. $ 36,000 70,000 140,000 88.200 $334.200 $ 78,000 80,000 160,000 132.800 $450.800 Data from the Current Year's Income Statement Sales. $672,000 $880,000 Cost of goods sold.. 528,080 699,840 Interest expense. 4,200 5,600 Net income.... 25,373 28,896 Beginning-of-Year Data Inventory... $ 53200 $ 85,120 Total assets. 345,800 443,200 Stockholders' equity. 217,000 285,120 A. Calculate current ratios, acid-test ratios, inventory turnovers, and days' sales uncollected for the two companies. Then state which company you think is the better short-term credit risk and why. B. Calculate return on total assets employed and return on stockholders' equity. Then, under the assumption that each company's stock can be purchased at book value, state which company's stock you think is the botter investment and why

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