Company wants to invest some of its excess cash in trading securities and is considering two investments, The Company () and Life Vests (). The income statement, balance sheet, and other data for both companies follow for and , as well as selected data for :

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	The Row Company			Kiddie Life Vests
	Comparative Financial Statements			Comparative Financial Statements
	Years Ended December 31,			Years Ended December 31,
	2025	2024	2023	2025	2024	2023
Income Statement
Net Sales Revenue	$430,642	$425,440		$410,830	$383,120
Cost of Goods Sold	258,854	256,392		299,890	280,670
Gross Profit	171,788	169,048		110,940	102,450
Operating Expenses	153,220	151,853		78,050	70,950
Operating Income	18,568	17,195		32,890	31,500
Interest Expense	800	725		2,770	2,970
Income before Income Tax	17,768	16,470		30,120	28,530
Income Tax Expense	5,115	4,850		8,780	8,640
Net Income	$12,653	$11,620		$21,340	$19,890
Balance Sheet
Assets
Cash and Cash Equivalents	$68,340	$70,283		$65,351	$55,250
Accounts Receivable	44,800	44,440	$44,170	39,880	38,670	$36,400
Merchandise Inventory	79,900	66,330	76,370	68,580	65,210	59,920
Other Current Assets	16,340	16,807		24,609	37,660
Total Current Assets	209,380	197,860		198,420	196,790
Long-term Assets	89,944	90,624		116,810	119,924
Total Assets	$299,324	$288,484	$276,890	$315,230	$316,714	$310,580
Liabilities
Current Liabilities	$69,560	$60,260		$90,830	$90,050
Long-term Liabilities	31,680	29,930		96,300	105,900
Total Liabilities	101,240	90,190		187,130	195,950
Stockholders' Equity
Common Stock	72,790	80,880		111,500	102,450
Retained Earnings	125,294	117,414		16,600	18,314
Total Stockholders' Equity	198,084	198,294	197,640	128,100	120,764	103,890
Total Liabilities and
Stockholders' Equity	$299,324	$288,484		$315,230	$316,714
Other Data
Market price per share	$21.38	$33.52		$45.88	$51.64
Annual dividend per share	0.33	0.31		0.45	0.38
Weighted average number of shares outstanding	8,500	7,000		8,500	7,000

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. Current ratio = Total current assets Total current liabilities Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, XXXX.) b. Cash ratio Begin by selecting the correct formula. Cash ratio =( Cash + Cash equivalents ) Total current liabilities Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) c. Inventory turnover Begin by selecting the correct formula. Requirements 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 c. Inventory turnover d. Accounts receivable turnover e. Gross profit percentage f. Debt ratio g. Debt to equity ratio h. Profit margin ratio i. Asset turnover ratio j. Rate of return on common stockholders' equity k. Earnings per share I. Pricelearnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2025 and 2024 . Make a recommendation to Water Way Company about investing in these companies. Which company would be a better investment, The Row Company or Kiddie 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. c. Inventory turnover Begin by selecting the correct formula. Inventory turnover= Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, .. .) Nato tohlo Mata tahle