Requirement 1. Compute the following ratios for both companies for 20X9. Total debt includes all liabilities. Assume all sales are on credit. (Round all answers to two decimal places and percentages to the nearest hundredth percent, X.XX%.) Good Buy Bargin Now a. Current ratio b. Quick ratio C. Accounts receivable turnover d. Inventory turnover Total-debt-to-total-assets ratio e. % % f. Total-debt-to-total-equity ratio % % g. ROE % % h. Gross profit rate % % i. Return on sales % % j. Total asset turnover k. Pretax return on assets % % 1. EPS m. P-E ratio n. % % Dividend yield Dividend payout 0. % % Requirement 2. Compare the liquidity, solvency, profitability, market price, and dividend ratios of Good Buy with those of Bargin Now. Begin by comparing the liquidity, solvency, and profitability of Good Buy with those of Bargin Now. V has a very slight advantage in liquidity. Their y has significantly more debt. Therefore, V has the higher probability of insolvency. Vis more profitable from the stockholders' viewpoint. V has a higher gross profit rate. has the better return on sales, asset turnover, and pretax return on assets. -..... Data table Income Statements Good Buy Bargin Now Year Ended December 31, 20X9 Sales HA $ $ 908,000 596,000 496,000 302,000 312,000 184,000 194,000 149,500 Cost of sales Gross profit Operating expenses Operating income Other revenue (expense) Pretax income 128,000 (21,500) 44,500 7,000 51,500 106,500 42,600 Income tax expense 20,600 63,900 $ $ Net income 30,900 $ Data table Balance Sheets Good Buy Bargin Now December 31 December 31 20X9 20X8 20X9 20x8 $ 9,700 $ 10,900 $ $ Assets Current assets Cash Marketable securities Accounts receivable Inventories 8,600 8,600 37,600 8,500 4,300 21,700 6,600 2,800 20,700 36,900 153,000 17,600 149,500 16,500 103,500 9,200 105,000 8,900 Prepaid expenses Total current assets Property and equipment, net 225,800 462,000 14,800 223,100 454,000 13,700 147,200 287,000 28,300 144,000 276,000 27,900 Other assets $ 702,600 $ 690,800 $ 462,500 $ 447,900 Total assets Liabilities and stockholders' equity Liabilities Current liabilities (summarized) Long-term debt Total liabilities $ $ 89,000 157,000 93,500 157,000 $ 63,000 19,000 $ 58,500 19,000 246,000 456,600 250,500 440,300 82,000 380,500 77,500 370,400 Stockholders' equity Total liabilities and stockholders' equity $ 702,600 $ 690,800 $ 462,500 $ 447,900