Part 1:

For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected.

Part 2:

Identify the company you consider to be better in managing short-term credit risk. Part 3:

For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders equity. Assuming that each company paid cash dividends of $4.50 per share and each companys stock can be purchased at $85 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Part 4:

Identify which companys stock you would recommend as the better investment.