Canyon Canoe Company wants to invest some of ils excess cash in trading securities and is considering two investments, The Paddle Company (PC) and Recreational Life Vests (RLV). The income statement, balance sheet, and other data for both companies follow for 2025 and 2024, as well as selected data for 2023: (Click the icon to view the data. Read the requirements Requirement 1. Compute each ratio for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio - Begin by selecting the correct formula. Requirements Current ratio X Data table d. B. The Paddle Company Comparative Financial Statements Years Ended December 31, 2025 2024 2023 Recreational Life Vests Comparative Financial Statements Years Ended December 31, 2025 2024 2023 Income Statement Net Sales Revenue 1. Using the financial statements given, compute the following ratios for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio b. Cash ratio Inventory turnover Accounts receivable turnover Gross profit percentage f. Debt ratio g. Debt to equity ratio h. Profit margin ratio i Asset turnover ratio Rate of return on common stockholders' equity . k. Earnings per share I Pricelearnings ralio m. Dividend yield . n. Dividend payout 2. Compare the companies' performance for 2025 and 2024. Make a recommendation to Canyon Canoe Company about investing in these companies. Which company would be a better investment, The Paddle Company or Recreational Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. $ 425,410 430,489 $ 258,756 $ 410,570 S 383,870 299,110 280,190 Cost of Goods Sold 256.797 Gross Profit 171,733 153,880 168.613 151,922 111,460 78,290 103,680 70,830 Operating Expenses Operating Income 17,853 16.691 788 33,170 2,780 32,850 2,980 Interest Expense 385 Income before Income Tax 16,983 5,137 15,903 4,809 30,390 8,780 29,870 8,630 Income Tax Expense $ 11,851 $ 11,094 $ 21,610 S 21,240 Net Income 17 1 1 Data table The st som -4, as Balance Sheet Assets Cash and Cash Equivalents $ 69,159 $ 70,793 $ 65,730 $ 55,270 Accounts Receivable 44,798 44,452 $ 44,104 39,810 38,650 $ 36,460 both Merchandise Inventory 76,363 59,930 79,919 15,494 66,341 16,264 68,500 24,450 65,230 37,630 Other Current Assets Total Current Assets 198,490 196,780 209,370 89,834 197,850 90,776 Long-term Assets 116,760 116,270 $ 299,204 $ 288,626 Total Assets $ 276,482 315,250 $ 313,050 $ 310,640 n, C Irec Liabilities Current Liabilities $ $ 69,554 $ 31,682 60,232 29,936 90,810 $ 96,310 90,010 105,890 Long-term Liabilities Total Liabilities 101,236 90,168 187,120 195,900 Stockholders' Equity Common Stock 72,795 125,173 80,885 117,573 111,530 16,600 102,480 14,670 Retained Earnings Total Stockholders' Equity 197,968 198,458 197,668 128,130 117,150 103,840 ckhc Total Liabilities and Print Done nce Yesti hpar ty to 17 1 Data table The st som -4, as Total Current ASSES ZUT,TU T97,000 T90,490 T90,TOU 89,834 90.776 116,760 116,270 Long-term Assets $ 299,204 $ Total Assets 288,626 $ $ 276,482 315,250 $ 313,050 $ 310,640 Liabilities both Current Liabilities $ $ 69,554 $ 31,682 60,232 29,936 90,810 $ 96,310 90,010 105,890 Long-term Liabilities 101,236 90,168 187,120 Total Liabilities 195,900 Stockholders' Equity Common Stock 102,480 72,795 125,173 80,885 117,573 111,530 16,600 n, C Irec Retained Earnings 14,670 Total Stockholders' Equity 197,968 198,458 197,668 128,130 117,150 103,840 Total Liabilities and $ 299,204 $ 288,626 $ Stockholders' Equity 315,250 $ 313,050 Other Data Market price per share $ 21.38 $ 33.82 46.37 $ 51.64 0.32 0.30 0.53 0.45 Annual dividend per share Weighted average number of shares outstanding ckhc 9,000 8,000 9,000 8,000 Print Done nce Yesti hpar ty to
