* Requirements ess and anic 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. 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 1. Rate of return on common stockholders' equity k. Earnings per share 1. Pricelearnings ratio m. Dividend yield otal yea RO Requirements O. ACCOUNTS Teceivabe 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. Earings per share 1. Pricelearnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Tree Top Company about investing in these companies. Which company would be a better investment, The Row Company or Zone 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. The Row Company Comparative Financial Statements Years Ended December 31, 2019 2018 2017 Zone Life Vests Comparative Financial Statements Years Ended December 31, 2019 2018 2017 $ $ Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit 430,268 $ 258,817 425,770 256,145 410,770 $ 299,560 383,550 280,560 171,451 153,000 169,625 151,853 111,210 78,490 102.990 70,160 Operating Expenses Operating Income 18,451 890 17.772 705 32,720 2,810 32,830 2,900 Interest Expense Data Table Income Statement Net Sales Revenue $ 430,268 $ 258,817 425,770 256,145 410,770 $ 383,550 299,560 280,560 Cost of Goods Sold Gross Profit 171,451 153,000 111,210 78.490 102,990 70,160 Operating Expenses Operating income Interest Expense 169,625 151,853 17.772 705 18,451 890 32,720 2,810 32,830 2,900 Income before Income Tax 17,561 5,082 17,067 4,850 Income Tax Expense 29,910 8,770 21.140 $ 29,930 8,690 21.240 Net Income $ 12,479 $ 12217 Print Done o fol Balance Sheet Assets Cash and Cash Equivalents Accounts Receivable Merchandise Inventory $ 68,630 S 44,720 79,880 16,080 70,415 44,460 $ 66,300 16,725 44,120 76,390 65,583 $ 39,850 68,590 24,417 54,920 38,680 $ 65,250 37.910 36,460 59,980 ja Curre Other Current Assets Total Current Assets mpar Long-term Assets 209,310 90,670 299,980 S 197,900 90,584 288,484 198,440 196,760 116,790 116,630 315,230 $ 313,390 ear $ 019 $ Total Assets $ 276,122 $ 310,250 Liabilities 69,590 $ 31,690 60,290 29,970 90,260 90,880 $ 96,300 90,080 105,900 Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock 101,280 187,180 195,980 72,760 125,940 80,840 117,384 111,490 16,560 128,050 102,440 14,970 Retained Earnings 198,700 Total Stockholders' Equity 198,224 197,640 117,410 103,820 Total Liabilities and $ 299,980 $ 288,484 $ 315,230 $ 313,390 Stockholders' Equity $ Other Data Market price per share Annual dividend per share Weighted average number of shares outstanding 21.28 $ 0.31 34.08 0.29 45.88 $ 0.46 51.56 0.37 9,200 7,200 9,200 7,200
