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Please do on excel Comparative ratio analysis P3 Summary information from the financial statements of two companies competing in the same industry follows. Required 1.
Please do on excel
Comparative ratio analysis P3 Summary information from the financial statements of two companies competing in the same industry follows. Required 1. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (f) days' sales uncollected. Round to one decimal place. Identify the company you consider to be the better short-term credit risk and explain why. 2. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company paid cash dividends of $1.50 per share and each company's stock can be purchased at $25 per share, compute their (e) price-earnings ratios and (f) dividend yields. Round to one decimal place; for part b, round to two decimals. Identify which company's stock you would recommend as the better investment and explain why. Check (1) Fargo: Accounts receivable turnover, 4.9; Inventory turnover, 3.0 (2) Ball: Profit margin, 9.2%; PE, 11.4
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