The Oar Company Comparative Financial Statements Years Ended December 31, Floatsy Life Vests Comparative Financial Statements Years Ended December 31, 2025 2024 2023 2025 2024 Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit $ 430,382 $ 425,060 $ 410,680 $ 383,350 258,532 256,392 299,560 280,890 171,850 168,668 111,120 102,460 154,000 151,362 78,610 Operating Expenses 70,490 Operating Income 17,850 17,306 32,510 31,970 830 715 2,750 2,990 Interest Expense Income before Income Tax 17,020 16,591 29,760 28,980 5,082 Income Tax Expense 4,920 8,720 8,650 $ 11,938 $ 11,671 21,040 $ 20,330 Net Income 2023 Balance Sheet Assets Cash and Cash Equivalents $ 68,800 $ 70,283 65,893 $ 55,140 Accounts Receivable 44,780 44,420 $ 44,140 39,800 38,690 $ 36,450 Merchandise Inventory 79,880 66,320 76,360 68,520 65,300 59,980 15,920 16,867 24,247 37,570 Other Current Assets Total Current Assets Long-term Assets Total Assets 209,380 197,890 198,460 196,700 90,498 91,028 116,780 116,468 $ 299,878 $ 288,918 $ 315,240 $ 313,168 276 890 310 580 Assets Cash and Cash Equivalents 68,800 $ 70,283 $ 65,893 $ 55,140 Accounts Receivable 44,780 44,420 $ 44,140 39,800 38,690 $ 36,450 Merchandise Inventory 79,880 66,320 76,360 68,520 65,300 59,980 Other Current Assets 15,920 16,867 24,247 37,570 Total Current Assets 209,380 197,890 198,460 196,700 Long-term Assets 90,498 91,028 116,780 116,468 299,878 $ 288,918 Total Assets $ 276,890 315,240 $ 313,168 $ 310,580 Liabilities Current Liabilities $ 69,540 $ 60,230 Long-term Liabilities 31,630 29,920 101,170 90,150 Total Liabilities $ 90,870 $ 90,100 96,280 105,860 187,150 195,960 Stockholders' Equity Common Stock 72,770 80,820 111,480 102,410 125,938 117,948 16,610 14,798 Retained Earnings Total Stockholders' Equity 198,708 198,768 128,090 117,208 197,640 103,850 Total Liabilities and $ 299,878 $ 288,918 $ 315,240 $ 313,168 Stockholders' Equity Other Data Market price per share $ 21.28 $ Annual dividend per share 0.38 33.64 0.35 46.54 $ 51.44 0.47 0.41 Weighted average number of shares outstanding 8,600 8,100 8,600 8,100 Requirements 1. 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. I. Earnings per share Price/earnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2025 and 2024. Make a recommendation to Calla Canoe Company about investing in these companies. Which company would be a better investment, The Oar Company or Floatsy 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. Print Done - Calla Canoe Company wants to invest some of its excess cash in trading securities and is considering two investments, The Oar Company (OC) and Floatsy Life Vests (FLV). The income statement, balance sheet, and other data for both companies follow for 2025 and 2024, as well as selected data for 2023: (Click the icon to view the data.) Read the requirements Requirement 1. Compute each ratio for both companies for 2025 and 2024. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio Begin by selecting the correct formula. Current ratio = Total current assets + Total current liabilities Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Current Year 2025 Current 2024 FLV C