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Calculate the following ratios for the LYL and MZM companies using the facts provided: 1) Acid Test, 2) Debt-to-Equity, 3) Profitability. They each produce chicken

Calculate the following ratios for the LYL and MZM companies using the facts provided: 1) Acid Test, 2) Debt-to-Equity, 3) Profitability. They each produce chicken feed. Show all work using a format like the grid I've attached. Then explain which company is the better investment.

LYL MZM
Cash $10,000

Cash $15,000

Accounts Receivable $15,000 Accounts Receivable $25000
Inventory $20,000 Inventory $40,000
Current Liabilities $12,000 Current Liabilities $20,000
Owner's Equity $25,000

Owner's Equity $35,000

Net Income $50,000 Net Income $75,000
Net Sales $500,000 Net Sales $800,000

Answer Format:

LYL Asset Test Ratio MZM Acid Test Ratio
LYL Debt-to-Equity Ratio MZM Debt-to-Equity Ratio
LYL Profitability Ratio MZM Profitability Ratio
USE THE REST OF THE SPACE TO DESCRIBE WHICH COMPANY IS THE BETTER INVESTMENT

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