Requirements 1. Using the financial statements given, compute the following ratios for both companies for 2019 and 2018. Assume all sales are credit sales. Round all ratios to two decimal places Current ratio a. b. Cash ratio Inventory turnover C. d. Accounts receivable turnover Gross profit percentage e. f. Debt ratio Debt to equity ratio g. Profit margin ratio h. Asset turnover ratio j. Rate of return on common stockholders' equity k. Earnings per share Price/earnings ratio m. Dividend yield Dividend payout n. 2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Wicked Wild Company about investing in these companies. Which company would be a better investment, The Kayak Company or Flashy Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay Print Done Stockholders' Equity Common Stock 72,800 80,890 111,380 102,450 125,696 117,076 16,690 14,644 Retained Earnings 198,496 197,966 128,070 117,094 197,620 Total Stockholders' Equity 103,900 Total Liabilities and $299,656 $ 315,230 $ 312,974 288,176 $ Stockholders' Equity Other Data 21.02 $ 46.28 $ Market price per share 33.64 51.14 Annual dividend per share 0.38 0.35 0.47 0.41 Weighted average number of 8,200 9,200 shares outstanding 9,200 8,200 Print Done Balance Sheet Assets Cash and Cash Equivalents 70,024 68,800 $ 65,934 $ 55,250 Accounts Receivable 44,770 44,480 $ 44,190 39,850 38,670 $ 36,400 76,340 79,900 Merchandise Inventory 66,380 68,560 65,280 59,910 37,520 15,850 16,946 24,066 Other Current Assets Total Current Assets 209,320 197,830 198,410 196,720 90,336 90,346 116,820 116,254 Long-term Assets $ 299,656 $ 288,1 76 $ 315,230 $ 312,974 Total Assets 276,456 310,810 Liabilities 69,530 $ Current Liabilities 60,230 90,890 $ 90,020 31,630 29,980 96,270 105,860 Long-term Liabilities 101,160 90,210 187,160 195,880 Total Liabilities Stockholders' Equity Common Stock 72.800 80.890 111.380 102.450 Print Done i Data Table The Kayak Company Flashy Life Vests Comparative Financial Statements Comparative Financial Statements Years Ended December 31, Years Ended December 31, 2019 2018 2017 2019 2018 2017 Income Statement 430,642 Net Sales Revenue 425,550 $ 410,440 $ 383,680 258,672 256,817 299,120 280,910 Cost of Goods Sold Gross Profit 171,970 168,733 111,320 102,770 70,950 153,550 151,853 78,050 Operating Expenses 31,820 Operating Income 18,420 16,880 33,270 785 2,700 2,910 885 Interest Expense Income before Income Tax 17,535 16,095 30,570 28,910 5,104 4,850 8,720 8,710 Income Tax Expense $ 12,431 $ 11,245 $ 21,850 $ 20,200 Net Income Print Done Wicked Wild Company wants to invest some of its excess cash in trading securities and is considering two investments, The Kayak Company (KC) and Flashy Life Vests (FLV). The income statement, balance sheet, and other data for both companies follow for 2019 and 2018, as well as selected data for 2017: (Click the icon to view the data.) Read the requirements Requirement 1. Compute each ratio for both companies for 2019 and 2018. Assume all sales are credit sales. Round all ratios to two decimal places. Current ratio Begin by selecting the correct formula. Current ratio Choose from any drop-down list and then click Check Answer. ? 33 parts remaining Clear All Check