Summary information from the financial statements of two companies competing in the same industry follows.

For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected. Identify the company you consider to be the better short-term credit risk and explain why. Round to one decimal place.

2. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders equity. Assuming that each company paid cash dividends of $1.50 per share and each companys stock can be purchased at $25 per share, compute their (e) price-earnings ratios and (f) dividend yields. Round to one decimal place, except for part b round to two decimals. Identify which companys stock you would recommend as the better investment and explain why.

Fargo Company Company Fargo Company Company Ball Ball Data from the current year's income statement Sales Cost of goods sold Interest expense. Income tax expense Data from the current year-end balance sheets Assets $ 20,000 36,500 70,500 9,000 82,000 0,100 176 900 252,300 $393.600 $667.500 290.600 480.000 2.300 2.300 61,700 2.19 Cash .. Accounts receivable, net Current notes receivable (trade) Merchandise inventory 77.100 11.600 86,800 9.700 5,900 5.700 3.850 .27 Basic earnings per share . . . . .. Beginning-of-year balance sheet data Liabilities and Equity Current liabilities Long-term notes payable . . . . . Common stock, $5 par value Retained earnings Total liabilities and equity . $ 90.500 97,000 93.300 41,000 65.600 129 100 Current notes receivable (trade) 93.000 33.000 105.100 383.400 80,500 443.000 33,000 41,000 09,700 . . . . Total assets Common stock, $5 par value $382,100 $460400Retained earnings 49.100