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. Pricelearnings ratio m. Dividend yield Dividend payout 2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Water Way Company about investing in these companies. Which company would be a better investment, The Water Company or Zone Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. n. The Water Company Comparative Financial Statements Years Ended December 31, 2019 2018 2017 Zone Life Vests Comparative Financial Statements Years Ended December 31, 2019 2018 2017 Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit $ 430,642 $ 258,817 425,060 256,532 410,120 $ 383,350 299,910 280,780 171,825 153,770 168,528 151,644 110,210 78,270 102,570 70,490 16,884 18,055 885 31,940 2,760 790 32,080 2,990 Operating Expenses Operating Income Interest Expense Income before Income Tax Income Tax Expense Net Income 17.170 5,115 16,094 4,850 29,180 8,720 20,460 $ 29,090 8,660 20,430 12,055 S 11.244 Balance Sheet 70,024 $ 68,510 $ 44,730 44,110 65,035 $ 39,800 68,590 25,055 44,470 $ 66,390 17,006 55,030 38,690 $ 65,240 37,780 36,400 59,970 79,910 16,230 76,330 Balance Sheet Assets Cash and Cash Equivalents Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Liabilities Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings 209,380 197,890 90,498 90,148 $ 299,878 $ 288,038 $ 276,780 198,480 196,740 116,800 116,890 315,280 $ 313,630 310,470 $ 69,520 $ 31,650 60,290 29,970 90,260 90,870 $ 90,020 96,360 105,950 187,230 195,970 101,170 72,790 125,918 80,800 116,978 111,380 16,670 102,420 15.240 Total Assets 299,878 $ 288,038 $ 276,780 315,280 % 313,630 310,470 Liabilities $ 69,520 $ 31,650 60,290 29,970 90,870 $ 96,360 187,230 90,020 105,950 195,970 101,170 90,260 Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 72,790 125,918 198,708 80,800 116,978 197,778 111,380 16,670 102,420 15,240 197,630 128,050 117,660 103,810 299,878 $ 288,038 $ 315,280 $ 313,630 21.02 $ 45.92 $ 51.56 Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding 33.40 0.38 0.39 0.51 0.42 8.900 7,400 8,900 7.400 1. Using the financial statements given, compute the following ratios for both companies for 2019 and 2018. Assume all sales are credit sales. Round all ratios to two decimal places