assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Welcome Home Inc. or For Life Corp. You assemble the following data:

theren d. Accounts receivable fumover Select the formula and then enter tho amounts to compute the accounts receivable turnover ratio for each companv. (Riound the ration to two decimal placos.) g. Retum cn assets h. Return on equity Select the fomula and then enter the amounts to compute the retum on equity for each company. (Found the ratios as percentages rounded to the nearast hundredth percent, X..XOS.) 1. Earninge per share Soloct the formusa and then enter the amounts to compute eamings per thare (EPg) for each company (Round EPS to fuo deioimal plucen.) \begin{tabular}{l|l|l|l|l|} \hline \end{tabular} j. Price-oarnings ratio Solect the formula and then enter the amounts to oompute the price-eamings (PE) ratio for each company. (Round the PE ratio to two decimal placen.) Which company's stock best fits your invostment strategy? The Common stock seoms to best fit the investrnont strategy. Its price-6aminge ratio is : baged on the results of the ratio analysis performed. Select thn farmuin and thnn antarthn amounts to compute the price-earnings (P WH, For Life, Corp. FL, C Welcome Home, Inc. investment strategy? are (EPS) for each company. (Round EPS to two decimal places.) ings (PE) ratio for each company. (Ro higher than that of For Life, Corp. higher than that of Welcome Home, Inc. lower than that of Welcome Home, Inc. lower than that of For Life, Corp. hent strategy. Its price-earnings ratio is and based on the results of the ratio analysis performed. Select the formula and then enter the amounts to compute the price-earnings (PE) ratio for each company. For Life, Corp. appears to be in slightly better shape than Welcome Home, Inc. Welcome Home, Inc. appears to be in slightly better shape than For Life, Corp. Data table Data table Selected balance sheet and market price data at the end of the current year: Data table More info 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. Requirement 1. Compute the following ratios for both companies for the current year and decide which company's stock best fits your investment strategy. Assume all sales are on credit. (Abbreviations used: A/R = accounts receivable, Avg = average, CS = common stock, EBIT = earnings before interest and taxes, Mkt = market, SE = stockholders' equity, and ST = short-term.) a. Quick ratio b. Debt ratio c. Interest coverage ratio d. Accounts receivable turnover e. Inventory turnover f. Total asset turnover g. Return on assets h. Return on equity i. Earnings per share j. Price-earnings ratio