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Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Hudson, Inc.,

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Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Hudson, Inc., or Madison Corp. You assemble the following data Click the icon to view the income statement data.) (Click the icon to view data at end of current year) (Click the icon to viuw data at beginning of current year) (Click the icon to view more information) Read the requirement 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 placen, XXX.) Quick ratio ) Hudson, Inc Madison Corp x 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 i Data Table -X Selected income statement data for the current year. $ $ Net sales Cost of goods sold EBIT. Hudson, Inc. 329,000 140,000 83,000 Madison, Corp. 355,000 172,000 98,000 4,000 107,000 Interest expense 9,000 Net income 84,000 - X Data Table Selected balance sheet and market price data at the end of the current year. Hudson, Inc. Madison, Corp. 23,000 14.000 Current assets Cash Short-term investments Accounts receivables, net Inventory 29,000 24,000 41,000 18,000 20,000 3,000 17,000 6.000 96,000 259,000 Prepaid expenses Total current assets Total assets Total current liabilities Total liabilities Common stock, $1.00 par, 5,000 shares $2.50 par, 5,000 shares Total stockholders' equity Market price per share of common stock 99,000 261,000 80,000 98,000 67,000 90,000 5.000 12,500 163,000 169.000 68 60 i Data Table Selected balance sheet data at the beginning of the current year. Hudson, Inc. 25,500 27,000 247.000 Accounts receivable, nel Inventory Total assets Common stock, $1.00 par 5,000 shares $2.50 par, 5,000 shares Total stockholders' equity Madison, Corp. 17.500 15,000 202,000 5,000 12,500 124,000 161,000

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