The Kayak Company			King Life Vests
	Comparative Financial Statements			Comparative Financial Statements
	Years Ended December 31,			Years Ended December 31,
	2025	2024	2023	2025	2024	2023
Income Statement
Net Sales Revenue	$430,268	$425,680		$410,290	$383,060
Cost of Goods Sold	258,247	256,854		299,120	280,450
Gross Profit	172,021	168,826		111,170	102,610
Operating Expenses	154,000	151,215		78,950	70,500
Operating Income	18,021	17,611		32,220	32,110
Interest Expense	885	705		2,810	2,990
Income before Income Tax	17,136	16,906		29,410	29,120
Income Tax Expense	5,126	4,220		8,720	8,640
Net Income	$12,010	$12,686		$20,690	$20,480
Balance Sheet
Assets
Cash and Cash Equivalents	$69,240	$70,650		$65,035	$55,030
Accounts Receivable	44,720	44,470	$44,190	39,790	38,600	$36,440
Merchandise Inventory	79,880	66,310	76,360	68,550	65,250	59,920
Other Current Assets	15,550	16,420		25,025	37,820
Total Current Assets	209,390	197,850		198,400	196,700
Long-term Assets	90,590	90,188		116,900	116,150
Total Assets	$299,980	$288,038	$276,012	$315,300	$312,850	$310,700
Liabilities
Current Liabilities	$69,540	$60,200		$90,850	$90,060
Long-term Liabilities	31,650	29,990		96,280	105,880
Total Liabilities	101,190	90,190		187,130	195,940
Stockholders' Equity
Common Stock	72,780	80,830		111,490	102,430
Retained Earnings	126,010	117,018		16,680	14,480
Total Stockholders' Equity	198,790	197,848	197,620	128,170	116,910	103,800
Total Liabilities and
Stockholders' Equity	$299,980	$288,038		$315,300	$312,850
Other Data
Market price per share	$21.28	$34.20		$46.66	$51.44
Annual dividend per share	0.40	0.37		0.52	0.44
Weighted average number of shares outstanding	8,700	6,700		8,700	6,700

Using the financial statements given, compute the following ratios for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places.
	a.	Current ratio
	b.	Cash ratio
	c.	Inventory turnover
	d.	Accounts receivable turnover
	e.	Gross profit percentage
	f.	Debt ratio
	g.	Debt to equity ratio
	h.	Profit margin ratio
	i.	Asset turnover ratio
	j.	Rate of return on common stockholders' equity
	k.	Earnings per share
	l.	Price/earnings ratio
	m.	Dividend yield
	n.	Dividend payout
2.	Compare the companies' performance for 2025 and 2024. Make a recommendation to Wonder Wilderness Company about investing in these companies. Which company would be a better investment, The Kayak Company or King Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment.