Happy Camper Company wants to invest some of its excess cash in trading securities and is considering two investments, The Pull Company (PC) and Zone Life Vests (ZLV).

The income statement, balance sheet, and other data for both companies follow for 2025 andn2024, as well as selected data for 2023:

1.	Using the financial statements given, compute the following ratios for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places.
	a.	Current ratio
	b.	Cash ratio
	c.	Inventory turnover
	d.	Accounts receivable turnover
	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
	l.	Price/earnings ratio
	m.	Dividend yield
	n.	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 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.

The Pull Company Zone Life Vests Comparative Financial Comparative Financial Statements Statements Years Ended December 31, Years Ended December 31, 2025 2024 2023 2025 2024 2023 Income Statement Net Sales Revenue $430,780 $425,550 $410,680 $383,290 Cost of Goods Sold 258,854 256,145 299,010 280,230 Gross Profit 171,926 169,405 111,670 103,060 Operating Expenses 154,000 151,362 78.490 70,160 Operating Income 17,926 18,043 33,180 32,900 Interest Expense 840 785 2,820 2,920 Income before Income Tax 17,086 17,258 30,360 29,980 Income Tax Expense 5,104 5,010 8,730 8,680 Net Income $11,982 $12,248 $21,630 $21,300 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' Fauity $69,240 $70,559 $65,893 $55,700 44,780 44,410 $44,150 39,790 38,660 $36,490 79,860 66,370 76,370 68,540 65,260 59,970 15,470 16,471 24,277 37,100 209,350 197,810 198,500 196,720 90,084 90,750 116,720 116,910 $299,434 $288,560 $276,678 $315,220 $313,630 $310,690 $69,530 31,630 101,160 $60,230 29,930 90,160 $90,830 96,370 187,200 $90,070 105,900 195,970 The Pull Company Zone Life Vests Comparative Financial Comparative Financial Statements Statements Years Ended December 31, Years Ended December 31, 2025 2024 2023 2025 2024 2023 Balance Sheet Assets Cash and Cash Equivalents $69,240 $70,559 $65,893 $55,700 Accounts Receivable 44,780 44,410 $44,150 39,790 38,660 $36,490 Merchandise Inventory 79,860 66,370 76,370 68,540 65,260 59,970 Other Current Assets 15,470 16,471 24,277 37,100 Total Current Assets 209,350 197,810 198,500 196,720 Long-term Assets 90,084 90,750 116,720 116,910 Total Assets $299,434 $288,560 $276,678_$315,220 $313,630 $310,690 Liabilities Current Liabilities $69,530 $60,230 $90,830 $90,070 Long-term Liabilities 31,630 29,930 96,370 105,900 Total Liabilities 101,160 90,160 187,200 195,970 Stockholders' Equity Common Stock 72,830 80,830 111,360 102,500 Retained Earnings 125,444 117,570 16,660 15,160 Total Stockholders' Equity 198,274 198,400 197,6701 128,020 117,660 103,800 Total Liabilities and Stockholders' Equity $299,434 $288,560 $315,220 $313,630 Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding $20.74 0.38 $34.08 0.37 $46.30 0.49 $51.02 0.4 9,100 7,600 9,100 7,600