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Summary information from the financial statements of two companies competing in the same industry follows. Furye Carpony Company Fery Company Congo Data from the contents

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Summary information from the financial statements of two companies competing in the same industry follows. Furye Carpony Company Fery Company Congo Data from the contents Duis from the camp.com C 520.000.00 Account 2. W Merchandise 6.30 12.000 9000 10.900 12800 22300 5332.100 SARDO Le Buggyre 590-500 59.000 Acontece Long to 93.00 10 March Commode 1.000 . 120100 Code $32.100 $200.00 47500 20.000.000 5.900 12.00 12.00 6000 122 21 300 06.100 33.000 573 Required 1. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and () days' sales uncollected. Round to one decimal place. Identify the company you consider to be the better short- term credit risk and explain why. 2. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company paid cash dividends of $1.50 per share and each company's stock can be purchased at $25 per share, compute their (e) price-earnings ratios and ) dividend yields. Round to one decimal place; for part b , round to two decimals. Identify which company's stock you work Jecommend as the better investment (> explain why. Q 573 ) analysis + Summary information from the financial statements of two companies competing in the same industry follows. 5.600 1. Culo NO 20 M. 11 12.00 12.00 600 219 2100 SA 200 Cu Lam 11 100 1500 22:00, 31000 30 Twi 3512 SA 000 4100 0.00 Required 1. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (0) days' sales uncollected Round to one decimal place. Identify the company you consider to be the better short- term credit risk and explain why. 2. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company paid cash dividends of $1.50 per share and each company's stock can be purchased at $25 per share, compute their (e) price-earnings ratios and (7) dividend yields. Round to one decimal place; for part b , round to two decimals. Identify which company's stock you woul Jecommend as the better investment explain why

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