PROBLEM 1. You work for a prominent investment banking firm, DEWEY, CHEATUM & HOWE. One of your most important clients, Maurice Howard, comes to you for investment advice regarding two top tier pet stores, EDDIE'S PET SUPPLY COMPANY and MILLIE'S PETS, INC. The Eddie's market price per common share is $100 and Millie's is $90 per common share. There is no preferred stock. You gathered the following financial information for the year ended, February 29, 2020. EDDIE'S MILLIE'S Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Income Statement Data for the year ended $67,390 $405,046 45,725 304,657 13,469 79,607 757 1,884 (2,944) 2,576 1,575 7,139 $ 2,920 $ 14,335 Net income Current assets Noncurrent assets Total assets Balance Sheet Data (02/29/2020) $17,213 $ 48,331 26,492 122,375 $43,705 $170,706 $10,070 $ 55,561 18,148 44,396 15,487 70,749 $43,705 $170,706 Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity EDDIES MILLIE'S Total assets Total stockholders' equity Current liabilities Beginning-of-Year Balances $44,533 $ 163,429 15,347 65,285 11,327 55,390 29,186 98,144 Total liabilities Other Data Average net accounts receivable Dividends per common share Average common shares outstanding $ 6,560 $ 4,025 $ 10 $ 20 5,000 7,500 Instructions: Using all of the financial analysis tools learned in Chapter 17 and based upon your complete analysis, which entity do you recommend to Maurice Howard, as the best investment? Maurice Howard insists upon seeing all of your calculations as proof of your recommendation