3. Following are data from the statements of two companies selling similar products: Current Year-End Balance Sheets Brave Company Cash $ 20,000 3,200 Notes receivable-short-term. Accounts receivable, net.. Dodger Company $ 21,900 7,700 42,000 58,800 1,680 232,120 64,000 Inventory Prepaid expenses. Plant and equipment, net. 87,680 1,520 274,400 $450,800 Total assets $364,200 Current liabilities. Mortgage payable Common stock, $10 par value. Retained earnings. Total liabilities and stockholders' equity. $ 66,000 70,000 140,000 88,200 $364,200 $ 78,000 80,000 160,000 132,800 $450.800 $880,000 699,840 5,600 Data from the Current Year's Income Statement Sales $672,000 Cost of goods sold. 528,080 Interest expense. 4,200 Net income. 25,373 Beginning-of-Year Data Inventory $ 53,200 Total assets. 345,800 Stockholders' equity. 217,000 28,896 $ 85,120 443,200 285, 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 better investment and why