Summary information from the financial statements of two companies competing in the same industry oblem 17.5B Comparative ratio analysis P3 follows. 1. For both companies compute the (a) curreat ratio, (b) acid-test ratio, (c) accounts roceivable tarn- Check Required over, (d) inventory turnover, (c) days' sales in inventory, and (f) days sales uncoliceted. Round to one decimal place. Ideritify the company you consider ta be the beter short-term credit risk and 2. For both companies compute the (a) profit margin ratio, (b) total asset turaover, (c) retum on total explain why. assets, and (d) return on equity. Assuming that cach company paid cash dividends of SI50 per share and each company's slock can be purchased at 525 per share, compute their (e) price-carnings mios and (f) dividend yields. Round to one decimal place, for part b, found to two decimals, Identify which company's stock you would recommend as the beticr invesiment and explain why: Summary information from the financial statements of two companies competing in the same industry oblem 17.5B Comparative ratio analysis P3 follows. 1. For both companies compute the (a) curreat ratio, (b) acid-test ratio, (c) accounts roceivable tarn- Check Required over, (d) inventory turnover, (c) days' sales in inventory, and (f) days sales uncoliceted. Round to one decimal place. Ideritify the company you consider ta be the beter short-term credit risk and 2. For both companies compute the (a) profit margin ratio, (b) total asset turaover, (c) retum on total explain why. assets, and (d) return on equity. Assuming that cach company paid cash dividends of SI50 per share and each company's slock can be purchased at 525 per share, compute their (e) price-carnings mios and (f) dividend yields. Round to one decimal place, for part b, found to two decimals, Identify which company's stock you would recommend as the beticr invesiment and explain why