Question: Decision making with ratio analysis

John Snow has recently retired, and he received a large lump sum settlement from his employer. He would like to invest this money to achieve a stable long term income. He is considering investing in the following two companies:

Allied Grocers (AG) are a 3-year-old online grocery retailer that specializes in delivering a wide selection of quality food products through an online platform.

Beta Solutions (BS) is an established 10-year-old electronics company that is known for selling the most innovative electronic products and software solutions.

Selected financial data for 2019

	AG	BS
Average total assets	1,500,000	4,000,000
Average # of common shares outstanding (no preferred shares)	10,000	10,000
Dividends paid	10,000	50,000
Current Market price per share	$95	$165

Net sales	1,300,000	6,300,000
Cost of goods sold	900,000	4,200,000
Gross profit	400,000	2,100,000
Operating Expenses:
Administrative expenses	80,000	1,000,000
Marketing expenses	120,000	300,000
Research and Development	5,000	200,000
Total Operating expenses	205,000	1,500,000
Net income	195,000	600,000

Required:

1. Calculate at least 5 ratios for each company to help John to make his decision.
2. Analyze the ratios and provide advice to John.