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Eeviliced 1. Iw both companies compute the (a) current ratio, (b) acid-teat ratio, (c) accounts receivable turnwhic. ( d ) inventory turnover, (e) days' sales

image text in transcribed Eeviliced 1. Iw both companies compute the (a) current ratio, (b) acid-teat ratio, (c) accounts receivable turnwhic. ( d ) inventory turnover, (e) days' sales in inventory, and (f) days' sales uncollected. Round io nur decimal place. Identify the company you consider to be the betier short-term credit risk and - iplain why. 3. Ix toah companies compute the (a) profit margin ratio, (b) total asset turnover, (c) roturs on total araik, and (d) return on common stockholders' equity. Asuming that each company pald cash thivilends of $1.50 per share and each company's stock can be purchased at $25 per thare, compote ifw ir (e) price-earnings ratios and (S) dividend yields. Round to one decimal place; for part b, round I. I ww decimals. Identify which company's stock you, would recommend as the betier isvestment sule explain why. Eeviliced 1. Iw both companies compute the (a) current ratio, (b) acid-teat ratio, (c) accounts receivable turnwhic. ( d ) inventory turnover, (e) days' sales in inventory, and (f) days' sales uncollected. Round io nur decimal place. Identify the company you consider to be the betier short-term credit risk and - iplain why. 3. Ix toah companies compute the (a) profit margin ratio, (b) total asset turnover, (c) roturs on total araik, and (d) return on common stockholders' equity. Asuming that each company pald cash thivilends of $1.50 per share and each company's stock can be purchased at $25 per thare, compote ifw ir (e) price-earnings ratios and (S) dividend yields. Round to one decimal place; for part b, round I. I ww decimals. Identify which company's stock you, would recommend as the betier isvestment sule explain why

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