Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Here To Stay, Inc., or Town and Country Corp. You assemble the following data: B! (Click the icon to view the income statement data.) (Click the icon to view data atond of current year.) Data table X Selected income statement data for the current year: two $ M Net sales Cost of goods sold EBIT Here To Stay, Inc. 995,000 158,000 104,000 5,000 43,000 Town and Country, Corp. 1,020,000 198,000 106,000 Interest expense 1.000 Net Income 64,000 3 1 X Data table ed Selected balance sheet and market price data at the end of the current year: Town and Country Here To Stay, Inc. Corp. Current assets: WO Cash OLE ME 24,000 12,000 9,000 24,000 Short-term investments Accounts receivables, net itid 19,000 hu 30,000 16,000 4,000 4. 20,000 3,000 . . 75,000 259,000 el en Inventory Prepaid expenses Total current assets Total assets Total current liabilities Total liabilities. Common stock, $1.00 par 1.000 shares $5.00 par, 1.000 shares. Total stockholders' equity 86,000 265,000 69,000 96,000 27,000 88,000 HT Td 1,000 5,000 HIMARIS 169,000 171.000 he Bell fati - X Data table Selected balance sheet data at the beginning of the current year. Town and Country, Corp. $ $ Here To Stay, Inc. 33,000 26,000 254,000 Accounts receivable, net Inventory Total assets Common stock, $1.00 par, 1,000 shares. $5.00 par 1,000 shares. 19,000 11,000 179,000 1,000 5,000 Print Done - X perl More info HT TC Your investment strategy is to purchase the stock of the company that has a low price-earnings ratio but seems to be in good shape financially. Assume that you analyzed all other factors and your decision depends on the results of the ratio analysis to be performed. . c. 1 Sell ratil a. Quick ratio Select the formula and then enter the amounts to compute the quick ratio for each company. (Round the ratios to two decimal places, X.XX.) Quick ratio HTS, Inc. TC, Corp. b. Debt ratio Select the formula and then enter the amounts to compute the debt ratio for each company. (Round the ratios as percentages rounded to the nearest hundredth percent, X.XX%.) ra Debt ratio the % HTS, Inc. TC, Corp % c. Interest coverage ratio Select the formula and then enter the amounts to compute the interest coverage ratio for each company. (Round the ratios to two decimal places.) Interest coverage ratio HTS, Inc. times TC, Corp. times d. Accounts receivable tumover Select the formula and then enter the amounts to compute the accounts receivable turnover ratio for each company (Round the ratios to two decimal places.) Accounts receivable turnover HTS, Inc. TC, Corp times times e. Inventory tumover Select the formula and then enter the amounts to compute the inventory turnover for each company. (Round the ratios to two decimal places.) Inventory turnover HTS, Inc. TC, Corp timos times f. Total asset tumover Select the formula and then enter the amounts to compute the total asset turnover for each company. (Round the ratios to two decimal places.) Total asset turnover HTS, Inc. TC, Corp times 11 times g. Retum on assets Select the formula and then enter the amounts to compute the retum on assets for each company (Round the ratios as percentages rounded to the nearest hundredth percent, X.XX%. 11 Retumi on assets % HTS, Inc. TC, Corp h. Return on equity Select the formula and then enter the amounts to compute the return on equity for each company. (Round the ratios as percentages rounded to the nearest hundredth percent, X.XX%.) Return on equity HTS, Inc. % TC, Corp. % 1. Earings per share Select the formula and then enter the amounts to compute earnings per share (EPS) for each company. (Round EPS to two decimal places.) Eamings per share HTS, Inc TC, Corp ]. Price-eamings ratio Select the formula and then enter the amounts to compute the price-earnings (PE) ratio for each company. (Round the PE ratio to two decimal places.) Price-earnings ratio HTS, Inc. TC, Corp. The Which company's stock best fits your investment strategy? common stock seems to best fit the investment strategy. Its price earnings ratio is V, and based on the results of the ratio analysis performed, Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Here To Stay, Inc., or Town and Country Corp. You assemble the following data: B! (Click the icon to view the income statement data.) (Click the icon to view data atond of current year.) Data table X Selected income statement data for the current year: two $ M Net sales Cost of goods sold EBIT Here To Stay, Inc. 995,000 158,000 104,000 5,000 43,000 Town and Country, Corp. 1,020,000 198,000 106,000 Interest expense 1.000 Net Income 64,000 3 1 X Data table ed Selected balance sheet and market price data at the end of the current year: Town and Country Here To Stay, Inc. Corp. Current assets: WO Cash OLE ME 24,000 12,000 9,000 24,000 Short-term investments Accounts receivables, net itid 19,000 hu 30,000 16,000 4,000 4. 20,000 3,000 . . 75,000 259,000 el en Inventory Prepaid expenses Total current assets Total assets Total current liabilities Total liabilities. Common stock, $1.00 par 1.000 shares $5.00 par, 1.000 shares. Total stockholders' equity 86,000 265,000 69,000 96,000 27,000 88,000 HT Td 1,000 5,000 HIMARIS 169,000 171.000 he Bell fati - X Data table Selected balance sheet data at the beginning of the current year. Town and Country, Corp. $ $ Here To Stay, Inc. 33,000 26,000 254,000 Accounts receivable, net Inventory Total assets Common stock, $1.00 par, 1,000 shares. $5.00 par 1,000 shares. 19,000 11,000 179,000 1,000 5,000 Print Done - X perl More info HT TC Your investment strategy is to purchase the stock of the company that has a low price-earnings ratio but seems to be in good shape financially. Assume that you analyzed all other factors and your decision depends on the results of the ratio analysis to be performed. . c. 1 Sell ratil a. Quick ratio Select the formula and then enter the amounts to compute the quick ratio for each company. (Round the ratios to two decimal places, X.XX.) Quick ratio HTS, Inc. TC, Corp. b. Debt ratio Select the formula and then enter the amounts to compute the debt ratio for each company. (Round the ratios as percentages rounded to the nearest hundredth percent, X.XX%.) ra Debt ratio the % HTS, Inc. TC, Corp % c. Interest coverage ratio Select the formula and then enter the amounts to compute the interest coverage ratio for each company. (Round the ratios to two decimal places.) Interest coverage ratio HTS, Inc. times TC, Corp. times d. Accounts receivable tumover Select the formula and then enter the amounts to compute the accounts receivable turnover ratio for each company (Round the ratios to two decimal places.) Accounts receivable turnover HTS, Inc. TC, Corp times times e. Inventory tumover Select the formula and then enter the amounts to compute the inventory turnover for each company. (Round the ratios to two decimal places.) Inventory turnover HTS, Inc. TC, Corp timos times f. Total asset tumover Select the formula and then enter the amounts to compute the total asset turnover for each company. (Round the ratios to two decimal places.) Total asset turnover HTS, Inc. TC, Corp times 11 times g. Retum on assets Select the formula and then enter the amounts to compute the retum on assets for each company (Round the ratios as percentages rounded to the nearest hundredth percent, X.XX%. 11 Retumi on assets % HTS, Inc. TC, Corp h. Return on equity Select the formula and then enter the amounts to compute the return on equity for each company. (Round the ratios as percentages rounded to the nearest hundredth percent, X.XX%.) Return on equity HTS, Inc. % TC, Corp. % 1. Earings per share Select the formula and then enter the amounts to compute earnings per share (EPS) for each company. (Round EPS to two decimal places.) Eamings per share HTS, Inc TC, Corp ]. Price-eamings ratio Select the formula and then enter the amounts to compute the price-earnings (PE) ratio for each company. (Round the PE ratio to two decimal places.) Price-earnings ratio HTS, Inc. TC, Corp. The Which company's stock best fits your investment strategy? common stock seems to best fit the investment strategy. Its price earnings ratio is V, and based on the results of the ratio analysis performed