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Accounts receivable turnover, Sigma, 1 3 . 5 times a . Compute the current ratio, acid - test ratio, accounts ( including notes ) receivable

Accounts receivable turnover, Sigma, 13.5 times
a. Compute the current ratio, acid-test ratio, accounts (including notes) receivable turnover, inventory turnover, days' sales in inventory, and days' sales in
receivables for both companies. Identify the company that you consider to be the better short-term credit risk and explain why.
b. Compute the net profit margin, total asset turnover, return on total assets, and return on common stockholders' equity for both companies. Assuming that each
company paid cash dividends of $1.50 per share and each company's stock can be purchased at $25 per share, compute their price-earnings ratios and dividend
vields. Identify which company's stock vou would recommend as the better investment and explain why.
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