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Requirements 1. Using the financial statements given, compute the following ratios for both companies for 2026 and 2025 . Assume all sales are credit sales.
Requirements 1. Using the financial statements given, compute the following ratios for both companies for 2026 and 2025 . 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 I. Price/earnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2026 and 2025. Make a recommendation to Better Boat Company about investing in these companies. Which company would be a better investment, The Kayak Company or Very 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. Data Requirement 1. Compute each ratio for both companies for 2026 and 2025. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio Begin by selecting the correct formula. Current ratio = Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) b. Cash ratio Begin by selecting the correct formula. Data Data
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