Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Verge Corporation stock or Express Company stock and have assembled the following data for the two companies. Click the icon to view the income statement data.) Click the icon to view data at end of current year.) (Click the icon to view data at beginning of 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 that your decision depends on the results of ratio analysis. Read the requirements. - X hy's stock better fits your investment strategy. Requirements age, Cash* = cash and cash equivalents, Mkt = market, o/s = outstanding, SE = stockholders' equity, and ST = short-term.) s to two decimal places, XXX.) = Quick ratio 1. Compute the following ratios for both companies for the current year, and decide which company's stock better fits 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 common stockholders' equity g. Earnings per share of common stock h. Price-earnings ratio Print Done Data Table Data Table Selected income statement data for the current year: Selected balance sheet data at beginning of current year: Verge Express Verge Express 598.000 $ 515.000 Balance sheet: Net sales (all on credit) Cost of goods sold Income from operations 457,000 385,000 Current receivables, net $ 148,000 $ 197,000 91.000 79.000 Inventories 198,000 213,000 849,000 Interest expense 16.000 Total assets 905,000 Net income 70,000 40,000 308,000 30,000 Long-term debt Preferred stock, 8%, $150 par Common stock, $1 par (115,000 shares) $5 par (10,000 shares) Total stockholders' equity 115,000 Print Done 50,000 217,000 262,000 - Data Table Selected balance sheet and market price data at end of current year: Verge Express $ 26,000 $ 10,000 187,000 210,000 11,000 39,000 14,000 163,000 187,000 6,000 Current assets: Cash Short-term investments Current receivables, net Inventories Prepaid expenses Total current assets Total assets Total current liabilities Total liabilities Preferred stock, 8%, $150 par Common stock, $1 par (115,000 shares) $5 par (10,000 shares) Total stockholders' equity Market price per share of common stock 444,000 983,000 370,000 668,000 409,000 926,000 331,000 700,000 30,000 115,000 315,000 6.71 $ 50,000 226,000 78.96 $