Ctio IT-Uw 11, -- Following are data from the statements of two companies selling similar products: Current Year-End Balance Sheets Sled Zip Company $ 20,000 3,200 64,000 87,680 3,520 274.400 S452.800 Company $ 11,900 7,700 42,000 58,800 1,680 232.120 S354.200 Cash Notes receivable-short-term Accounts receivable, net. Inventory Prepaid expenses Plant and equipment, net... Total assets. $ 56,000 70,000 140,000 88,200 $354.200 $ 80,000 80,000 160,000 132,800 S452.800 Current liabilities... Mortgage payable. Common stock, $10 par value. Retained earnings Total liabilities and stockholders' equity. Data from the Current Year's Income Statement Sales Cost of goods sold Interest expense.. Net income. $672,000 528,080 4,200 23,373 $880,000 699,840 5,600 28,896 Beginning-of-Year Data S 53,200 345,800 217,000 $ 85,120 443,200 285,120 Inventory Total assets. Stockholders' equity Required: 1. Calculate current ratios, acid-test ratios, inventory turnovers, and days' sales uncollected for the two companies. Then state which company you think is the better short-term credit risk and why. 2. Calculate return on total assets employed and return on stockholders' equity. Then, under the assumption that each company's stock can be purchased at book value, state which company's stock you think is the better investment and why