Q: 1. Operating Asset Management Analysis

A. Current Ratio Current Assets / Current Liabilities Heckle Co. 1,520,400 / 544,200 = 2.794 Jackle Co. 2,629,800 / 1,046,000 = 2.514

B. Quick Ratio (Current Assets Inventories) / Current Liabilities Heckle Co. 890,600 / 544,200 = 1.637 Jackle Co. 1,376,400 / 1,046,000 = 1.316

C. Receivables Turnover Net Credit Sales / Average Accounts Receivable Heckle Co. 12,560,000 / 552,800 = 22.721 Jackle Co. 25,210,000 / 985,400 = 25.584

D. Days Sales Uncollected 365 / Receivable Turnover Heckle Co. 16 Days Jackle Co. 14 Days

E. Inventory Turnover Cost of goods sold / Average Inventory Heckle Co. 6,142,000 / 629,800 = 9.752 Jackle Co. 14,834,000 / 1,253,400 = 11.835

F. Days Inventory On Hand 365 / Inventory Turnover Heckle Co. 37 Days Jackle Co. 31 Days

G. Payables Turnover Total Supplier Purchases / Accounts Payable Heckle Co. 6,142,000 / 344,000 = 17.855 Jackle Co. 14,834,000 / 572,600 = 25.906

H. Days Payable 365 / Inventory Turnover Heckle Co. 20 Days Jackle Co. 14 Days

I. Financing Period Days Inventory Period + Days Receivable Days Payable Heckle Co. 33 Days Jackle Co. 31 Days

2. Profitability And Total Asset Management Analysis

A. Profit Margin Net Profit / Sales x 100 Heckle Co. 215,400 / 12,560,000 = 1.715% Jackle Co. 305,800 / 25,210,000 = 1.213%

B. Asset Turnover Sales Or Revenue / Total Assets Heckle Co. 12,560,000 / 4,987,200 = 2.518 Jackle Co. 25,210,000 / 9,326,600 = 2.703

C. Return On Assets Net Income / Total Assets Heckle Co. 215,400 / 4,987,200 = 4.319% Jackle Co. 305,800 / 9,326,600 = 3.279%

3. Financial Risk Analysis

A. Debt To Equity Ration Total Liabilities / Shareholder Equity Heckle Co. 2,544,200 / 2,443,000 = 1.041 Jackle Co. 6,280,600 / 6,280,600 = 1.000

B. Return On Equity Net Income / Shareholder Equity Heckle Co. 215,400 / 2,443,000 = 8.817% Jackle Co. 305,800 / 6,280,600 = 4.869%

C. Investing Coverage Ratio Heckle Co. Jackle Co.

4. Liquidity Analysis

A. Cash Flows To Sales Operating Cash Flow / Net Sales Heckle Co. 271,500 / 12,560,000 = 2.162% Jackle Co. 492,500 / 25,210,000 = 1.954%

B. Cash Flows To Assets Cash From Operations / Total Assets Heckle Co. 271,500 / 4,987,200 = 5.444% Jackle Co. 492,500 / 9,326,600 = 5.281%

C. Free Cash Flows Cash Flow From Operations Capital Expenditure Heckle Co. (353,500) Jackle Co. (557,500)

5. An Analysis Of Market Strength

A. Price / Earnings Ration Market Value Per Share / Earnings Per Share Heckle Co. 60 / 4.3080 = 13.928 Jackle Co. 76 / 10.1933 = 7.456

B. Dividend Yield Annual Dividend Per Share / Price Per Share Heckle Co. 1.0 / 60 = 1.667% Jackle Co. 3.8 / 76 = 5.000%

Which one should JD Campbell and Associates invest in and why? Explain why you would choose one and not the other one descriptive paragrah form