Summary information from the financial statements of two companies competing in the same industry follows. Ryan Company Priest Company Ryan Company Priest Company Data from the current year-end balance sheets Data from the current year?s income statement Assets Sales $ 770,000 $ 893,200 Cash $ 20,000 $ 34,000 Cost of goods sold 587,100 640,500 Accounts receivable, net 35,400 56,400 Interest expense 7,800 11,000 Current notes receivable (trade) 9,100 8,800 Income tax expense 14,800 24,659 Merchandise inventory 84,240 134,500 Net income 160,300 217,041 Prepaid expenses 5,500 7,000 Basic earnings per share 4.22 5.27 Plant assets, net 340,000 304,400 Total assets $ 494,240 $ 545,100 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 26,800 $ 54,200 Current liabilities $ 62,340 $ 96,300 Current notes receivable (trade) 0 0 Long-term notes payable 81,800 99,000 Merchandise inventory 61,600 109,400 Common stock, $5 par value 190,000 206,000 Total assets 408,000 382,500 Retained earnings 160,100 143,800 Common stock, $5 par value 190,000 206,000 Total liabilities and equity $ 494,240 $ 545,100 Retained earnings 118,300 92,600 -------------------------QUESTION--------------------------------- Required: 1.1 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. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place.) Ryan Company Priest Company (a) Current ratio to to (b) Acid-test ratio to to (c) Accounts receivable turnover times times (d) Inventory turnover times times (e) Days' sales in inventory days days (f) Days' sales uncollected days days 1.2 Identify the company you consider to be better in managing short-term credit risk. Priest company Ryan company check my workeBook Links (2)references 3.value: 10.00 points 2.1 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 $3.8 per share and each company?s stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the "%" sign in your response.) Ryan Company Priest Company (a) Profit margin ratio % % (b) Total asset turnover times times (c) Return on total assets % % (d) Return on common stockholders' equity % % (e) Price-earnings ratio (f) Dividend yield % % 2.2 Identify which company?s stock you would recommend as the better investment. Priest company Ryan company check my workeBook Links (2)references