Summary information from the financial statements of two companies competing in the same industry fcllows. \begin{tabular}{lrr} Retained earnings & 123,300 & 142,150 \\ Total liabilities and equity & $445,440 & \\ Data from the current year's Income statement & \\ Sales & $77,0,000 & $880,200 \\ Cost of goods sold & 585,100 & 632,500 \\ Interest expense & 7,900 & 13,000 \\ Income tax expense & 14,800 & 24,300 \\ Net income & 162,200 & 210,400 \\ Basic earnings per share & 4.51 & 5,11 \\ Cash dividends per share & 3,81 & 3.93 \\ Beginning-of-year balance sheet data & & \\ Accounts receivable, net & 29,800 & $54,200 \\ Merchandise inventory & 55,600 & 107,400 \\ Total assets & 398,000 & 382,500 \\ Common stock, $5 par value & 180,000 & 206,000 \\ Retained earnings & 98,300 & 93,600 \end{tabular} Required 1. For both companies compute the (a) current ratio, (b) acidtest ratio, (c) accounts receivible turnower, (d) inventory turnover. ( c ) diys' sales in inventory, and ( ) days' sales uncollected. Round to one decimal place. Identify the company you consider to be the better shorterm credit risk and explain why. 2. For both companies compute the (a) profit margin ratio, (b) total asset turnower, (c) return on total assets, and (d) return on equity: Asxuming that each company's stock can be purchased at $75 per share, compute their (e) price-tarnings ration and (j) dividend yields. Round to one decimal place. Identify which company's stock you would recommend as the better investment and explain why