Following are data from the statements of two companies selling similar products: Current Year-End Balance Sheets Zip Company 20,000 3,200 Sled Company $11,900 7,700 42,000 58,800 1,680 232,120 $354,200 Cash.. Notes receivable-short-term Accounts receivable, net... Inventory Prepaid expenses. Plant and equipment, net.. Total assets.... 64,000 87,680 3,520 274,400 $452,800 $ 56,000 70,000 140,000 88,200 $354,200 Current liabilities 80,000 80,000 160,000 132,800 $452,800 Mortgage payable.. Common stock, $10 par value............ Retained earnings Total liabilities and stockholders' equity. Data from the Current Year's Income Statement Sales Cost of goods sold. Interest expense $672,000 528,080 4,200 23,373 $880,000 699,840 5,600 28,896 Net income.. Beginning-of-Year Data 53,200 345,800 217,000 85,120 443,200 285,120 Inventory Total assets. Stockholders' equity. Required: 1. State which company you think is the better short-term credit risk and why. 2. 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