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Happy Camper Company wants to invest some of its excess cash in trading securities and is considering two investments, The Pull Company (PC) and Beguiling
Happy Camper Company wants to invest some of its excess cash in trading securities and is considering two investments, The Pull Company (PC) and Beguiling Life Vests (BLV). The income statement, balance sheet, and other data for both companies follow for 2025 and 2024, as well as selected data for 2023: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute each ratio for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places. The Pull Company Comparative Financial Statements Beguiling Life Vests Comparative Financial Statements Years Ended December 31, Years Ended December 31, 2025 2024 2023 2025 2024 2023 Income Statement Net Sales Revenue $ 430,446 $ 425,290 258,977 256,532 $ 410,060 $ 383,350 299,670 280,780 Cost of Goods Sold Gross Profit 171,469 153,990 168,758 151,215 110,390 78,490 102,570 70,160 Operating Expenses Operating Income 17,479 17,543 31,900 2,760 32,410 2,900 860 755 Interest Expense Income before Income Tax 16,619 5,138 16,788 4,400 29,140 8,750 29,510 8,680 Income Tax Expense $ 11,481 $ 12,388 $ 20,390 $ 20,830 Net Income Balance Sheet Assets $ 68,770 $ 70,559 $ 65,249 $ 55,030 Cash and Cash Equivalents Accounts Receivable Merchandise Inventory 44,760 44,470 $ 44,170 39,800 38,620 $ 36,490 76,300 59,990 79,860 15,970 66,340 16,471 68,590 24,781 65,300 37,840 Other Current Assets Total Current Assets 198,420 209,360 90,074 197,840 90,720 196,790 116,276 116,870 Long-term Assets Total Assets $ 299,434 $ 288,560 $ 315,290 $ 313,066 $ 276,678 $ 310,700 Liabilities Current Liabilities $ 69,550 $ 60,250 31,630 29,970 $ 90,870 $ 90,040 96,360 105,920 Long-term Liabilities 101,180 90,220 187,230 Total Liabilities 195,960 Stockholders' Equity Common Stock 111,490 72,780 125,474 80,800 117,540 102,490 14,616 16,570 198,254 198,340 197,690) 128,060 117,106 103,900 Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 299,434 $ 288,560 $ 315,290 $ 313,066 Other Data $ 21.44 $ 33.52 46.42 $ 51.56 Market price per share Annual dividend per share Weighted average number of shares outstanding 0.31 0.30 0.47 0.39 8,900 6,900 8,900 6,900 e. Gross profit percentage 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 2025 and 2024. Make a recommendation to Happy Camper Company about investing in these companies. Which company would be a better investment, The Pull Company or Beguiling Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to now lona torm dont nrofitability and attractivonoce con investment n. e. Gross profit percentage 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 Dividend yield Dividend payout 2. Compare the companies' performance for 2025 and 2024. Make a recommendation to Happy Camper Company about investing in these companies. Which company would be a better investment, The Pull Company or Beguiling 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. m. n. Happy Camper Company wants to invest some of its excess cash in trading securities and is considering two investments, The Pull Company (PC) and Beguiling Life Vests (BLV). The income statement, balance sheet, and other data for both companies follow for 2025 and 2024, as well as selected data for 2023: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute each ratio for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places. The Pull Company Comparative Financial Statements Beguiling Life Vests Comparative Financial Statements Years Ended December 31, Years Ended December 31, 2025 2024 2023 2025 2024 2023 Income Statement Net Sales Revenue $ 430,446 $ 425,290 258,977 256,532 $ 410,060 $ 383,350 299,670 280,780 Cost of Goods Sold Gross Profit 171,469 153,990 168,758 151,215 110,390 78,490 102,570 70,160 Operating Expenses Operating Income 17,479 17,543 31,900 2,760 32,410 2,900 860 755 Interest Expense Income before Income Tax 16,619 5,138 16,788 4,400 29,140 8,750 29,510 8,680 Income Tax Expense $ 11,481 $ 12,388 $ 20,390 $ 20,830 Net Income Balance Sheet Assets $ 68,770 $ 70,559 $ 65,249 $ 55,030 Cash and Cash Equivalents Accounts Receivable Merchandise Inventory 44,760 44,470 $ 44,170 39,800 38,620 $ 36,490 76,300 59,990 79,860 15,970 66,340 16,471 68,590 24,781 65,300 37,840 Other Current Assets Total Current Assets 198,420 209,360 90,074 197,840 90,720 196,790 116,276 116,870 Long-term Assets Total Assets $ 299,434 $ 288,560 $ 315,290 $ 313,066 $ 276,678 $ 310,700 Liabilities Current Liabilities $ 69,550 $ 60,250 31,630 29,970 $ 90,870 $ 90,040 96,360 105,920 Long-term Liabilities 101,180 90,220 187,230 Total Liabilities 195,960 Stockholders' Equity Common Stock 111,490 72,780 125,474 80,800 117,540 102,490 14,616 16,570 198,254 198,340 197,690) 128,060 117,106 103,900 Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 299,434 $ 288,560 $ 315,290 $ 313,066 Other Data $ 21.44 $ 33.52 46.42 $ 51.56 Market price per share Annual dividend per share Weighted average number of shares outstanding 0.31 0.30 0.47 0.39 8,900 6,900 8,900 6,900 e. Gross profit percentage 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 2025 and 2024. Make a recommendation to Happy Camper Company about investing in these companies. Which company would be a better investment, The Pull Company or Beguiling Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to now lona torm dont nrofitability and attractivonoce con investment n. e. Gross profit percentage 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 Dividend yield Dividend payout 2. Compare the companies' performance for 2025 and 2024. Make a recommendation to Happy Camper Company about investing in these companies. Which company would be a better investment, The Pull Company or Beguiling 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. m. n
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