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Following are data from the statement of two companies selling similar products: Current Year-End Balance Sheets Beginning-of-Year Data Data from the Current Year's Income Statement
Following are data from the statement of two companies selling similar products: Current Year-End Balance Sheets Beginning-of-Year Data Data from the Current Year's Income Statement Required: Calculate current ratios, acid-test ratios, inventory turnovers, and days' sales uncollected for the two companies. Then state which company you think is the better short-term credit risk and why. Calculate return on total assets employed and return on stockholders' equity. Then, under the assumption that each company's stock can be purchased at book value, state which company's stock you think is the better investment and why. Following are data from the statement of two companies selling similar products: Current Year-End Balance Sheets Beginning-of-Year Data Data from the Current Year's Income Statement Required: Calculate current ratios, acid-test ratios, inventory turnovers, and days' sales uncollected for the two companies. Then state which company you think is the better short-term credit risk and why. Calculate return on total assets employed and return on stockholders' equity. Then, under the assumption that each company's stock can be purchased at book value, state which company's stock you think is the better investment and why
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