Express Video Express Assume you are considering purchasing shares as an investment. You are to decide between two companies - their details are below. Video End of Year Balance Sheet and Mkt Price Income Statement Data Current Assets Net Sales (all on credit) 603,000 519.000 Cash COGS 454,000 387,000 Short term investments Income from Operations 93,000 72.000 Current receivables, net Interest Expenses 0 12.000 Inventories Net Income 56,000 38,000 Prepaid expenses Total current assets Total Assets Selected Beginning of Year Data Video Express Current receivables, net 142,000 193,000 Total Current Liabilities Inventories 209,000 197,000 Total Liabilities Total Assets 842,000 909.000 Long-term debt 0 303,000 Preferred Shares (250 shares, $4 div) Preferred Shares (250 shares, $4 div) 25,000 Common Shares - 150,000 shares Common Shares - 150,000 shares 150,000 Common shares - 20,000 shares Common shares - 20,000 shares 100.000 Total Shareholders Equity Total Shareholders Equity 263,000 215,000 Mkt price per common share 25,000 6,000 189,000 211,000 19,000 450,000 974,000 39,000 13,000 164.000 183,000 15,000 414,000 938,000 366,000 667,000 338,000 691,000 25,000 150,000 307,000 9 9 100.000 247,000 47.5 Evaluation Compute the following Ratios and provide your analysis on which is better and what it means Ratio Video Express Better Entity Quick Ratio Inventory Turnover Days Sales in Receivables Debt Ratio Times Interest Earned Return on Equity Earnings per Share Price/Earnings Ratio Which company would you decide to invest in