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Data table Tree Top Company wants to invest some of its excess cash in trading securities and is considering two investments, The Canoe Company (CC)
Data table Tree Top Company wants to invest some of its excess cash in trading securities and is considering two investments, The Canoe Company (CC) and King Life Vests (KLV). 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. Current ratio = 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. Price/earnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2025 and 2024. Make a recommendation to Tree Top Company about investing in these companies. Which company would be a better investment, The Canoe Company or King Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay Iong-term debt, profitability, and attractiveness as an investment
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