Question 2: Problem 17-5a has 2 parts. Each requires you to interpret the data you have calculated. Please post your interpretations and opinions to these parts here.

Summary information from the financial statements of two companies competing in the same industry follows. Required For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days5 sales in inventory, and (f) days' sales uncollected. Identify the company you consider to be the better short-term credit risk and explain why. Round to one decimal place. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders5 equity. Assuming that each company paid cash dividends of $3.80 per share and each company's stock can be purchased at $75 per share, compute their (e) price-eamings ratios and (f) dividend yields. Round to one decimal place. Identify which company's stock you would recommend as the better investment and explain why