Question content area top Part 1 Better Boat Company wants to invest some of its excess cash in trading securities and is considering two investments, The Oar Company (OC) and Flashy Life Vests (FLV). The income statement, balance sheet, and other data for both companies follow for 2025 and 2024, as well as selected data for 2023: Data table

	The Oar Company	Flashy Life Vests
	Comparative Financial Statements	Comparative Financial Statements
	Years Ended December 31,	Years Ended December 31,
	2025	2024	2023	2025	2024	2023
Income Statement
Net Sales Revenue	$430,642	$425,290		$410,350	$383,680
Cost of Goods Sold	258,817	256,817		299,120	280,450
Gross Profit	171,825	168,473		111,230	103,230
Operating Expenses	153,550	151,572		78,490	70,380
Operating Income	18,275	16,901		32,740	32,850
Interest Expense	860	790		2,700	2,960
Income before Income Tax	17,415	16,111		30,040	29,890
Income Tax Expense	5,115	4,180		8,780	8,680
Net Income	$12,300	$11,931		$21,260	$21,210
Balance Sheet
Assets
Cash and Cash Equivalents	$68,340	$70,172		$65,893	$55,580
Accounts Receivable	44,730	44,460	$44,150	39,820	38,700	$36,460
Merchandise Inventory	79,930	66,300	76,350	68,550	65,300	59,980
Other Current Assets	16,340	16,898		24,187	37,140
Total Current Assets	209,340	197,830		198,450	196,720
Long-term Assets	90,094	90,346		116,840	116,254
Total Assets	$299,434	$288,176	$276,122	$315,290	$312,974	$310,700
Liabilities
Current Liabilities	$69,500	$60,290		$90,840	$90,050
Long-term Liabilities	31,630	29,940		96,320	105,860
Total Liabilities	101,130	90,230		187,160	195,910
Stockholders' Equity
Common Stock	72,750	80,840		111,510	102,490
Retained Earnings	125,554	117,106		16,620	14,574
Total Stockholders' Equity	198,304	197,946	197,620	128,130	117,064	103,860
Total Liabilities and
Stockholders' Equity	$299,434	$288,176		$315,290	$312,974
Other Data
Market price per share	$20.74	$33.64		$46.28	$51.38
Annual dividend per share	0.39	0.37		0.50	0.43
Weighted average number of shares outstanding	8,500	7,500		8,500	7,500

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 b. Cash ratio c. Inventory turnover d. Accounts receivable turnover e. Gross profit percentage f. Debt ratio g. Debt to equity ratio h. Profit margin ratio i. Asset turnover ratio j. Rate of return on common stockholders' equity k. Earnings per share l. Price/earnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2025 and 2024. Make a recommendation to Better Boat Company about investing in these companies. Which company would be a better investment, The Oar Company or Flashy Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment.