Datatech\\ Sigma Datatech Sigma Company\\ Company Company \\Company Beginning - of- year data :" Liabilities and Stockholders" Equity Current liabilities ... . . $ 60, 340 $ 92, 300 Accounts receivable , net ...... $ 28, 800 $ 53, 200 Long-term notes payable ...... 79, 800 100, 000 Notes receivable ( trade ) .... 205, 000 Merchandise inventory .... 54, 600 106, 400 Common stock , $5 par value ... 175, 000 388, 000 372, 500 Retained earnings ... 119, 300 139, 150 Total assets .. . . . . Common stock , $5 par value ... 175 , 000 205, 000 Total liabilities and equity ..... $434, 440 $536, 450 Retained earnings . 94, 300 90. 600 Required : CHECK a. Compute the current ratio , acid - test ratio , accounts ( including notes ) receivable turnover , inventory turnover , Accounts receivable* days " sales in inventory , and days " sales in receivables for both companies . Identify the company that you turnover , Sigma , 13.5 times consider to be the better short - term credit risk and explain why ." 6. Compute the net profit margin , total asset turnover , return on total assets , and return on common stockholders " equity for both companies . Assuming that each company paid cash dividends of $1.50 per share and each company's stock can be purchased at $ 25 per share , compute their price- earnings ratios and dividend yields ." Identify which company's stock you would recommend as the better investment and explain why ."