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Please see attached picture. Provide steps and sulotions. Tree Top Company wants to invest some of its excess cash in trading securities and is considering
Please see attached picture. Provide steps and sulotions.
Tree Top Company wants to invest some of its excess cash in trading securities and is considering two investments, The Row Company (RC) and Amateur Life Vests (ALV). 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 reguirements. 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. a. Current ratio Begin by selecting the correct formula. Current ratio Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Current Current ash ratio Year 2025 2024 b. Data table Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Interest Expense RC Amateur Life Vests Comparative Financial Statements Years Ended December 31, ALV equirements 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 The Row Company Comparative Financial Statements Years Ended December 31, 2025 430,268 $ 258,977 171,291 153,660 17,631 885 16,746 5,138 11,608 $ 2024 425,120 256,392 168,728 151,644 17,084 785 16,299 5,010 11 ,289 2023 197,650 Done 2025 410,060 $ 299,890 110,170 78,950 31,220 2,810 28,410 8,730 19,680 $ 2024 383,350 280,010 103,340 70,050 33,290 2,940 30,350 8,660 21 ,690 2023 b. c. d. e. f. g. h. j. k. m. n. Cash ratio Inventory turnover Accounts receivable tumover Gross profit percentage Debt ratio Debt to equity ratio Profit margin ratio Asset turnover ratio Rate of return on common stockholders' equity Eamings per share Pricelearnings ratio Dividend yield Dividend payout Income before Income Tax Income Tax Expense Net Income ata table urrent Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Eamings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding 2. Compare the companies' performance fcIr 2025 and 2024. Make a recommendation to Tree Top Company about investing in these companies. Which company would be a better investment, The Row Company or Amateur Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to 69,540 $ 31 ,670 101 ,210 72,830 125,728 198,558 299,768 $ 21.28 $ 0.35 8,900 print 60,290 29,930 90,220 80,820 117,444 198,264 288,484 34.08 0.33 8,400 90,800 $ 96,290 187,090 111,480 16,630 128,110 315,200 $ 46.30 $ 0.47 8,900 90,030 105,850 195,880 102,490 15,120 117,610 313,490 51.14 0.39 8,400 ata table alance Sheet Assets ash and Cash Equivalents unts Receivable Merchandise Inventory Other Current Assets Total Current Assets 103,830 I-Ong-term Assets Total Assets Liabilities Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity print 68,340 $ 44,780 79,900 16,330 209,350 90,418 299,768 $ 69,540 $ 31 ,670 101 ,210 print 70,024 44,500 $ 66,370 16,916 197,810 90,674 288,484 60,290 29,930 90,220 Done 44, 160 76,320 276,234 Done 65,249 $ 39,820 68,570 24,841 198,480 116,720 315,200 $ 90,800 $ 96,290 187,090 55,140 38,700 $ 65,280 37,670 196,790 116,700 313,490 90,030 105,850 195,880 36,440 59,940 310,700
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