Crosby Inc Gretzky Inc. Current liabilities Long-term liabilities Stockholders' equity Common stock, $5 par 6% Preferred stock, $10 par, cumulative Retained earnings $12,000 $12,000 15,000 92,000 68,000 18,400 20,000 8,000 24,000 12,000 Total liabilities and stockholders' equity $139,000 $142,400 Net income, included in above retained earnings amount Common stockholders' equity, prior year $20,000 90,000 $8,000 36,000 Compute the following ratios, entering each answer rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425. a. Compute the total liabilities-to-equity ratio. Crosby Inc. Gretzky Inc. 0.24 2.71 b. Compute the return on equity ratio. 0.19 x 0.2 x c. Compute book value per share of common stock. 0 x 0 x d. Interpret the results. When comparing Crosby Inc. to Gretzky Inc., Crosby Inc. has Lower debt relative to equity Lower return on investment to shareholders Lower common shareholder investment per share Indicated by the total liabilities-to-equity ratio Indicated by the return on equity ratio Indicated by the book value per share These results indicate that Crosby, as compared to Gretzky, has Profitability Lower Higher Check Solvency