Canyon Cance Company wants to invest some of its excess cash in truding securties and is considering two investmenia, The Paddle Company (PC) and Recreational Life Veata (RV) The income statement, beiance sheet, and other data for both companies follow for 2019 and 2018, as well as selected data for 2017 Click the icon to view the data.) Read the ma Requirement 1. Compule each ratio for both companies for 2019 and 2018 Assume al sales are credit sales. Round at ratios to two decimal places a. Current rate Begin by selecting the correct formula Cu Now, computs the ratio for both companies for both years. (Round your answers to two decimal places, XXXXX) Ratio Gument Current b. Cashrab 2018 2918 PC RLV Begin by selecting the correct formu Cash 2 Now compute the ratio for both companies for both years. (found your answers to two decimal places XXX) Ratio Cash Year 2019 Cash 2018 PC RLV c. Inventory turnover Begin by selecting the correct formsin Inventory humover Now compute the ratio for both companies for both years. (Round your answers to two decimal places XXX) Ratio Year Inventory turnover 2019 Inventory tumor 2018 d. Accounts receivable (AR) tumover Degn by selecting the correct formile. PC RLV xitemprod.pearsonoma cam/api/vbrist,higher AR Now compute the rate for both companies for both years (Round your answers to two decimal places XXXXX) Rate AR All move page Year 2019 2018 Begin by selecting the comect formula Gross prot% PC LY Now, compute the ratio for both companies for both years Round your answer to ws decimal places-the hunt XX0%) Ratio Gross profit% Year 2019 Gross prift% 2018 PC RLV f. Debratio Begin by selecting the correct formul Debratio Now, compute the rate for both companies for both years Enter your answers as a percentage to han decimal places-the name hundred percent XXXX%) Debt Year 2019 2015 PC RLY Debt Debt to equity Begin by secting the comect formul Debt to equity re Now, compute the radio for both compares for both years (Enter your sat Ratio Year Detto equity 2019 Del 2018 h. Profit marge rat Bigin by selecting the correct formula Profit margin rato PC RLV as a percentage Round your awers so we decimal places, XXX) Pint axitenprod.pearsoncmg.com/api/v1/highered Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two deamar places the neare hundreth percent, XXX Ratio Profit margin Protimargin LAssel turnove Year 2010 2018 Begin by selecting the correctformu As mover ratio PC RLV New compute the ratio for both companies for both years (Round your answers to two decimal places, XXX Ratio Above Asset turnover Year 2019 2018 PC RLV J. Rate of retum on common stockholders' equity (ROR on common) Begin by selecting the correct formula ROR on common SE (10) Now, compute the ratio for both companies for both years. Enter your answers as a percentage to two deomal paces-the nearest hundredth percem XX0%) Ratio ROR on common SE Year PC RLV 2019 ROR on common SE 2018 k. Eamings per share Begin by selecting the correct formula Carings per share Now, compute the radio for both companies for both years, (Round your answers to two decimal places, XXX) Ratio Year Earnings per share 2019 Eamings per share 2018 1.Png PC RLV Begn by selecting the correct form Pricelings to (12) Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, XXX) Print temprod pearsoncmg.com/api/v1/print/highered Ratio Year PC RLV Pricelearnings 2019 Price/earnings 2018 m. Dividend yield Begin by selecting the correct formula Dividend yield (13) Now, compute the ratio for both companies for both years (Enter your answers as a percentage to two decimal places-the nearest hundredth percent, XXX%) Ratio Dividend yield Year 2010 Dividend yield 2018 n. Dividend payout PC RLV Begin by selecting the correct formula Dividend payout (14) Now, compule the ratio for both companies for both years. Enter your answers as a percentage to two decimal places-the nearest hundredth percent, XX%) Ratio Dividend payout Dividend payout Year 2019 2018 PC RLV Print Requirement 2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Canyon Canoe Company about investing in these companies. Which company would be a better investment, The Paddle Comparty or Recreational Life Vests? Base your answer on atlity to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment Start by comparing each company's ability to pay current liabilities. Select the appropriate ratios and identify which company has the stronger ratio Review the ratios you calculated in Requirement Ability to pay current liabilities Potential investment company Ratos (15) (17) with stronger ratio (18) Next, compare each company's ability to sell merchandise inventory and collect receivables Select the appropriate ratios and identity which company has the stronger ratio Bedw the ratos you calculated in Regurement 1 Ability to sell merchandise inventory and collect receivables Potential investment company xitemprod.pearsoncmg.com/api/v1/print/highered Ratos (21) (23) (20) (22) (24) Compare each company's ability to pay long term detit. Select the appropriate ratios and identify which company has the stronger ratio Beview the rats you calculated in Requirement Ability to pay long-term debt Potential investment company with stronger ratio (26) Ratios (25) 127) Compare the potential investment companies in terms of profitability. Select the appropriate ratios and identify which company the stronger ratio Rete the ratios you calcuated in Requirement.1 Profitability Potential investment company Ratios (29) (31) with stronger rad (30) (32) Print (33) (35) (34) (30) Now compare each potential investment company's stock as an investment. Select the appropriate ratios and identity which company has the stronger ratio (If one of the investment company's ratios is stronger than the other in one year but weaker in the next, base the comparison on the 2019 ratio) Bede the ratos you calculated in Requirement.. Stock as an investment Potential investment company Rabo (37) (39) (41) Conclusion and recommendation: with stronger ratio (38) (40) (42) Overall (43) companies appear to be stable, with (44) fuctuation between the two years (45)) Canyon Canoe Company is looking for a short-term investment in trading securities, it should buy (46) appears to be a greater risk in the long-term due to its higher debt and debt to equity ratios Se because it has a higher dividend yield and dividend payout tempred pearsoncmg.com/api/v1/print/highered i Data Table The Paddle Company Comparative Financial Statements Years Ended December 31, 2219 2018 Income Statement Net Sales Re $30.495 425.410 Cost of Goods Sold 258,756 256.797 Recreational Life Vests Comparative Financial Statements Years Ended December 31, 2018 2017 2019 410,570 583870 290110 200100 2017 Gross Front 171,733 168,613 111,400 103000 Operating Expenses 153,800 151,902 78,200 70,830 Operating come 17.053 10.001 33.170 32350 805 Interest Expen 788 2.700 2300 incoms before Income Tax 16.000 15,005 30390 29.870 Income Tax Expen 5,137 4,000 1700 8.000 $ 11.201 11,094 21.410 21240 Net income Balance Sheet Assets Cash and Cash Events $ 60,100 70,790 06,730 65270 Accounts Receivabl 44,790 44,452 5 44,104 39,810 36,460 Merchandise Inventory 70,910 06.341 76.365 68.500 65230 08930 Other Current Assets 10,404 10,264 24,400 37430 Total Current Ass 200,370 197,850 198400 194780 89.834 Long-Ass 00.776 116.760 116270 $290.204 Total Assets 208,626 4 276.483 015250 $ 313050 310,640 Labe Curent Liabilities $ 68.564 Long-term Liabil 31.682 60,232 29,900 " 101.230 90,168 90410 00010 96.310 105.000 187,120 185900 T Stockholders' Equity Common Stock 72.795 80,885 111,530 102480 125,173 117,573 16,000 14670 Eaming Prin xitemprod pearsoncmg.com/abitvt/print/highered Retained Earings The fly Total Liabetes and 125,173 117.575 1600 34670 Pret 1979 TOR 128,130 117,150 Stockholders Cy $299.204 288.629 315250313060 2: Requirements Other Data Market price per share $ 21.30 S 10.30 33.82 $ 0.30 46:37 1 053 51.04 0.45 shares outstanding 5.000 8.000 9.000 6.000 1. Using the financial statements given compute the following ratios for both companies for 2019 and 2018. Assume ales are credit sales. Round all ratios to two decimal places ... Cumento D. Cash rato G Inventory over d. Accounts receivable tumover Groes profit percentage Detit ratio 9 Debt to equity ratio h. Proft margin rato k Asset Samover ratio 1 Rate of return on common stockholders' equity k Earnings per share L Pricelemingsradio m. Dividend yield " Dividend payout 2. Compare the companies' performance for 2019 and 2018 Make a recommendation to Canyon Canoe Company about investing in these companies. Which company would be a better investment, The Padde Company or Recreational Life Vests? Base your answer on absity to pay curent Sabities, aby to sell merchandise and colect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment 28 O 365+ Accounts receivable O (Cash Cash equivalents) Total current liabilities O (Cash Short-term investments Accounts receivable, net+ Total curent Sabilties O Cost of goods sold Average merchandise inventory turnover ratio O Annual dividend per share Earnings per share O Annual dividend per share Market price per share O Market price per share of common stock Earnings per share O Gross Profit-Net sales revenue O Net income-Prefered dividends) Weighted average number of common share outstanding O Total abilities Total equity Natass-Average total assets xitemprod pearsoncmg.com/api/v1/print/highered 98 O 365 Accounts receivable turnover ratio O Annual dividend per share + Earnings per share O (Cash Cash equivalents) Total current labies 1 O (Cash Short-term investments Accounts receivable, net) Total current bites O Cost of goods sold + Average merchandise inventory O Gross Profit O Annual dividend per share Market price per share O Market price per share of common stock + Earnings per share O Net credit sales Average net accounts receivable O Net income Net sales Net sales revenue O(Net income-Preferred dividends) Weighted average number of common share outstanding O Total abilities Total equity O Net sales Average total assets Total current assets Total current liabilities O (Net income Preferred dividends)+ Average common stockholders' equity O Total Sabilities + Total O O365 + Accounts receivable turnover ratio O Annual dividend per share + Earnings per share O (Cash Cash equivalents) Total current liabilities O (Cash Short-term investments + Accounts receivable, net Total current liabilities O Cost of goods sold + Average merchandise inventory O Gross Profit + Net sales revenue O Annual dividend per share + Market price per share O Market price per share of common stock + Earnings per share ONet credit sales Average net accounts receivable O Net income Net sales O Net income Preferred dividends)+Weighted average number of common share outstanding O Total labinies Total equity ONet sales Average total assets O Total current assets + Total current liabilities O (Net income-Preferred dividends) Average common stockholders' equity O Total abilities Total asset (4) O O 365+ Accounts receivable turnover ratio O Annual dividend per share Earnings per share O Annual dividend per share + Market price per share O (Cash Cash equivalents) Total current liabilities O (Cash Short-term investments Accounts receivable, net) Total curent liabilities O Cost of goods sold Average merchandise inventory O Gross Profit Net sales revenue O Market price per share of common stock + Earnings per share O Net credit sales Average net accounts receivable O Net income + Net sales O (Net income-Preferred dividende) + Weighted average number of common share outstanding O Total liabilities + Total equity O Net sales Average total assets O Total current assets Total current liabilities O (Net income - Preferred dividends) + Average common stockholders' equity O Total abilities Total asset (5) O O365 Accounts receivable turnover ratio O (Cash Cash equivalents) + Total current liabilities O (Cash Short-term investments + Accounts receivable, net)+ Total current liablites O Cost of goods sold + Average merchandise inventory O Gross Profit O Annual dividend per share Earnings per share i O Annual dividend per share + Market price per share O Market price per share of common stock Earnings per share O Net credit sales+ Average net accounts receivable O Net income Net sales Net sales revenue O (Net income-Preferred dividends) Weighted average number of common share outstanding O Total Rabilities Total equity O Net sales Average total assets O Total current assets+ Total current liabilities O (Net income-Preferred dividends) + Average common stockholders' equity O Total liabilities +Total asset (0) O O365 Accounts receivable turnover ratio O Annual dividend per share + Earnings per share O Annual dividend per share Market price per share O (Cash Cash equivalents) + Total current liabilities O (Cash Short-term investments Accounts receivable, net) + Total current liabilities O Cost of goods sold + Average merchandise inventory O Gross Profit Net sales revenue O Market price per share of common stock Eamings per share O Net credit sales Average net accounts receivable O (Net income Preferred dividends) Weighted average number of common share outstanding O Total liabilities Total equity O Net sales Average total assets Total current assets Total current liabilities MO turnover ratio Earrings per share Market price per share O ICash Cash equivalents Total curent be O (Cash Short-term investments Accounts receivable, net) Totalcumentati O Cost of goods sold Average merchandise inventory O 365+ Accounts receivable O Annual dividend per share O Annual dividend per share O Market price per share of common stock Earnings per share O Net credit sales Average net accounts receivable O Net income Net sales O Gross Profit Net sales revenue O Net income-Preferred dividend Weighted average number of common share outstanding Oly O Net sales Average total assets O Total curent assets Total current O Net income- Preferred dividends) Average common stockholders equity O Total abilites Total If O O365 Accounts receivable O Annual dividend per share over ratio Earnings per share O Cash Cash equivalents) Total cuentabi O Cash-Short-term investments Accounts receivable, Totalment Cost of goods sold Average merchandise inventory O Gross Profit+Net sales revenue O Annual dividend per share+Market price per share O Market price per share of common stock Earnings per share Net credit sales+Average net accounts receivable O Net income Net sales O Net income-Preferred dividende Weighted average number of common share outstanding O Total Total equity ONet sales-Average total Total current assets Tocumen O Net income Prefemed dividends) Average common stockholders' equity O Total abilities - Total O O365 Accounts receivable turnover ratio O Annual dividend per share O(Cash Cash equivalents)+Totalcument b O Cash Short-term investments Accounts receivable, ne+Total cuentabilities O Cost of goods sold + Average merchandise inventory Earnings per share O Annual dividend per share Market price per share O Gross Profit O Market price per share of common stock Earnings per share O Net credit sales + Average net accounts receivable O Net income Net sales Net sales revenue O Net income-Prefered dividends) Weighted average number of common share outstanding O Total labies Total equity O Nat sales Average total assets O Total current assets Total cument sabie O (Net income-Preferred dividends) Average common stockholders' equity O Total liabilities Total (10) O O (Cash Cash equivalents) Total cument b O Cash Short-term investments Accounts receivable, net Total cunere labilities turnover ratio Earnings per share Market price per share O Gross Profit O Cost of goods sold Average merchandise inventory Net sales revenue O 365+ Accounts receivable O Annual dividend per share O Annual dividend per share O Market price per share of common stock + Eamings per share O Net credit sales Average net accounts receivable ONet income Not sales O (Net income-Preferred dividends) Average common stockholders' equity (11) O O 365 Accounts receivable turnover ratio O Annual dividend per share O INet income-Preferred dividends) Weighted average number of common shane outstanding O Total abies Total equity O Net sales Average total assets O Total current assets Total current labies O Total abilities + Total asset O (Cash Cash equivalents) Total current liabilities O (Cash Short-term investments Accounts receivable, ne Total current labilities O Cost of goods sold Average merchandise inventory Earnings per share O Annual dividend per share Market price per share O Gross Profit Net sales revenue O Market price per share of common stock+ Earnings per share ONet income Prefected dividendsWeighted average number of common share outstanding O Total fabilities Total equity ONet sales Average total Prik (12) O O 365 Accounts receivable O Annual dividend per share O Amual dividend per share turnover ratio Earings per share Market price per share O Cash Cash equivalents) Total co O (Cash Short-tems investments Accounts receivable, netTotal cent O Cest of goods sold Average merchandise inventory O Gross Profit Net sales revenue O Market price per share of common stock Earnings per share O Net credit sales Average net accounts receivable O Net income Net sales ONet income-Prefeed dividend Weighted average number of common share outstanding Ootals Total equity O Net sales Average total ass O Total current aseets Total current sabots O Net income Preferred dividends) Average common stockholders equity O Total tabl (13) O O 365+ Accounts receivable turnover ratio O Annual dividend per share Earnings per share Market price per share O Cash Cash equivalents) Total current sabites O (Cash Short-term investments Accounts receivable, net +T Cost of goods snide Average merchandise inventory Net sales revenue O Annual dividend per share O Gross Profit O Market price per share of common stock + Eamings per share O Net credit sales -Average net accounts receivable O Net income Net sa O Net income-Premed dildende) + Weighted average number of common share cutting O ONet sales Average total asses O Total current assets Total current abilities O Net Income Prefered dividends) Average common stockholders equity O Total abrities Total 114 O O 365+Accounts receivable turnover ratio O (Cash Cash equivalents) Total cuentable O (Cash Short-term investments Accounts receivable, nat Total current oblities O Anual dividend per share Earnings per share O Cost of goods sold Average merchandise inventory O Annual dividend per share Market price per share O Gross Proft Net sales rever O Market price per share of common stock Earnings per share O Net credit sales Average net accounts receivable O Net income Net sales O Net income Preferred dividends) Weighted average number of common share outstanding O Total abilities Total equity O Net sales Average total asses O Total current assets Total curent Sab O (Net income-Preferred dividends)+ Average common stockholders equity O Total abilities Total (16) O O Accounts receivable turnover O Asset turmover ratio O Cash ratio (17) O O Accounts receivable turnover O Asset turnover ratio O Cash ratio (19) O O Accounts receivable turnover O Asset turnover ratio O Dividend yield O Current ratio O Price earnings ratio O O Debt ratio O Earnings per share O Profit margin ratio O Debt to equity ratio O Gross profit percentage O Rate of return on common stockholders' equity O PO OFLV O Dividend payout O Inventory tumover O Current ratio O Debt ratio O Debt to equity ratio O Dividend payout O Current ratio O Debt ratio O Dividend yield O Earnings per share O Pricemings ratio O Profit margin ratio O Gross profit percentage O Rate of retum on common stockholders' equity ORLV O Inventory tumover (20) O 8PC ORLV O Dividend yield O Price/earnings ratio O Rate of return on common stockholders' equity O Earings per share O Profit margin ratio O Debt to equity ratio O Gross profit percentage O Dividend payout O Inventory turnover Print (222) O Print O PO ORLV tempred pearsoncmg.com,apivuplingnghered 221) O O Accounts receivable hurnover (23) O Asset turnover ratio Cash ratio O Accourts receivable sumover O Asset fumover ratio O Cash ratio (25) O O Accounts receivable turnover O Current ratio Debt ratio Debt to equity ratio O Dividend payout O Dividend yield O Priowearrings ratio O Earnings per share O Gross profit percentage O Inventory tumover O Profit margin ratio O Rate of retum on common stockholders' equity O Current ratio O Debat O Debt to equity ratio O Dividend payout O Dividend yield O Earrings per share O Gross profit percentage Onventory tumover O Price/earnings ratio (24) O O Profit margin ratio OPC O Rate of return on common stockholders' equity O ALV O Current ratio O Debt ratio O Dividend yield O Earings per share O Price/earnings ratio 26) O O Profit margin rato O Asset turnover ratios O Debt to equity ratio O Gross proft percentage O Rate of return on common stockholders' equity OPO O RLV O Dividend payout O Inventory turnover O Current ratio O Dividendywid O Earnings per share O Debt to equity ratio O Dividend payout O Gross proft percentage O Inventory turnover O Current ratio O O Debt ratio O Debt to equity ratio O Dividend payout O Dividend yield O Earnings per share O Inventory turnover O Price/eamings ratio O Current ratio O Debt ra O Debt to equity ratio O Dividend payout O Dividend yield O Famings per share O Inventory turnover O Price/earnings ratio O Current ratio O Dividend yield O Debt ratio O Debt to equity ratio O Dividend payout O Cash ratio (27) O O Accounts receivable tumover O Asset turnover ratio O Cash ratio 0% O Accounts receivable turnover Asset turnover ratio O Cash ratio (31) O O Accounts receivable turnover O Asset turnover ratio O Cash (35 O O Accounts receivable turnover Asset turnover ratio O Cash rato O O Accounts receivable turnover O Asset turnover ratio O Cash ratio 37) O Debt ratio O Debt ratio O Earnings per share O Debt to equity ratio O Inventory turnover O Dividend payout O Current ratio O Accounts receivable turnover O Debt rato Assat tumour ratio (38) O O Profit margin ratio PO Dabt to equity ratio, O Gross profit percentage O Rate of ratum on common stockholders' equity ORLV O Price/earnings ratio O Profit margin ratio O Rate of return on common stockholders' equity (28) O OPC O RLV O Profit margin ratio Rate of 20 O return on common stockholders' equity OPC CO RLV O Profit margin ratio O Rate of return on common stockholders' equity O Profit margin ratio O Current ratio O Earnings per share O Inventory turnover O Price/earnings ratio O Dividend yield O Price/earnings ratio O Dividend yield O Eamings per share O Rate of return on common stockholders' equity O Profit margin ratio O Rate of return on common stockholders equity Price/earnings ratio 132) O OPC O FLV (34) O O PO O FLY p O OPC O ALV O Asset turnover ratio O Cash ratio (31) O O Accounts receivable turnover O Asset turnover ratio O Cash ratio (33) O O Accounts receivable turnover O Asset turnover ratio O Cash rate (35) O O Accounts receivable turnover O Asset turnover ratio O Cash ratio 137) O O Accounts receivable turnover O Asset turnover ratio O Cash ratio (39) O O Accounts receivable turnover Asset turnover ratio Cash ratio (41) O O Accounts receivable turnover O Asset turnover ratio O Cash ratio (45) O The Paddle Company O Recreational Life Vests O Debt to equity ratio O Dividend payout O Current ratio O Debt ratio O Current ratio O Cumentatio O Debratio O Profit margin ratio O Rate of return on common stockholders equity O Profit margin ratio O Rate of retum on common stockholders' equity O Profit margin ratio O Rate of retum on common stockholders equity O Debt to equity ratio O Dividend payout O Debt ratio O Debt to equity ratio O Inventory turnover O Pros/earings ratio O Dividend yield O Earnings per share O Inventory turnover O Price/samings ratio O Dividend yield O Earnings per share Alle on common stockholders equity OPC OLY 02) O OPC ORLV 04) O OPC O Dividend payout O Inventory fumover O Price/earnings ratio OFLV O Debt to equity ratio O Dividend payout O Dividend yield O Earnings per share O Inventory turnover O Price/eamings ratio on O OPC O ALV O Current ratio O Debt ratio O Dividend yield O Earnings per share ON O O Profit margin ratio O PO O Debt to equity ratio O Dividend payout Current ratio O De O Gross profit percentage O Inventory turnover O Dividend yield O Eamings per share O Rate of return on common stockholders equity ORLY 140 O O Profit margin ratio OPC O Debt to equity ratio O Dividend payout O Gross profit percentage O Inventory turnover O Rate of return on common stockholders' equity ORLY Current ratio O Debt ratio 112) O (43) O both (44) O OPC O neither of the O ALV O Debt to equity ratio O Dividend payout (46) O The Padde Company O Recreational Life Vests Dividend yield O Earings per share O Gross profit percentage O Inventory turnover O Price/earnings ratio O Price/earnings ratio O Priceleamings ratio O Profit margin ratio O Rate of return on common stockholders' equity MacBook Air