The Water Company Comparative Financial Statements Years Ended December 31, 2019 2018 Kiddie Life Vests Comparative Financial Statements Years Ended December 31, 2019 2018 2017 2017 $ $ 430,382 $ 258,790 425,060 256,247 410,830 $ 383,290 299,670 280,910 171,592 153,220 168,813 151,792 111,160 78,950 102,380 70,950 Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Interest Expense Income before Income Tax Income Tax Expense Net Income 18,372 840 17,021 725 32,210 2,770 31,430 2,970 17,532 5,104 16,296 4,180 29,440 8,790 28,460 8,700 $ 12,428 $ 12,116 20,650 $ 19,760 Balance Sheet Assets Cash and Cash Equivalents $ 68,920 $ 70,650 65,035 $ 54,810 a. c. e. 1. Using the financial statements givey, compute the following ratios for both companies for 2019 and 2018. Assume all sales are credit sales. Round all ratios to two decimal places. Current ratio b. Cash ratio Inventory turnover d. Accounts receivable turnover 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 1. Pricelearnings ratio m. Dividend yield Dividend payout 2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Nature Gnome Company about investing in these companies. Which company would be a better investment, The Water Company or Kiddie 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. n. Requirement 1. Compute each ratio for both companies for 2019 and 2018. Assume all sales are credit sales. Round all ratios to two decimal places. a. Current ratio Begin by selecting the correct formula. Current ratio Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year WC KLV 2019 Current Current 2018 b. Cash ratio Begin by selecting the correct formula Cash ratio Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, XXX.) Ratio Year WC KLV Cash 2019 Cash 2018 C. Inventory tumover Begin by selecting the correct formula. Inventory turnover Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year WC Inventory tumover 2019 Inventory tumover d. Accounts receivable (AR) turnover Begin by selecting the correct formula KLV 2018 AR turnover Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year WC KLV AR turnover 2019 AR turnover 2018 e. Gross profit percentage Gross profit percentage Begin by selecting the correct formula. Gross profit % Now, compute the ratio for both companies for both years. (Round your answers to two decimal places--the nearest hundredth percent, X.XX%.) Ratio Year WC KLV Gross profit % 2019 Gross profit % 2018 % % % % f. Debt ratio Begin by selecting the correct formula. Debt ratio Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal places--the nearest hundredth percent, X.X Ratio Year WC KLV 2019 % Debt Debt % % 2018 % g. Debt to equity ratio Begin by selecting the correct formula Debt to equity ratio Now, compute the ratio for both companies for both years. (Enter your answers as a rate and not as a percentage. Round your answers to two decimal places Ratio Year WC Debt to equity 2019 Debt to equity 2018 h. Profit margin ratio Begin by selecting the correct formula Profit margin ratio KLV Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal places--the nearest hundredth percent, X.XX% Year WC KLV Ratio Profit margin Profit margin % % 2019 2018 % % 1. Asset turnover ratio 1. Asset turnover ratio Begin by selecting the correct formula. Asset turnover ratio Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year WC KLV Asset turnover 2019 Asset turnover 2018 j. Rate of return on common stockholders' equity (ROR on common SE) Begin by selecting the correct formula. ROR on common SE Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal places--the nearest hundredth percent, X. Ratio Year WC ROR on common SE 2019 % ROR on common SE 2018 % KLV % % k. Earnings per share WC KLY k. Earnings per share Begin by selecting the correct formula. Earnings per share Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year Earnings per share 2019 Earnings per share 1. Prica/earnings ratio Begin by selecting the correct formula. Pricelearnings ratio 2018 Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year WC KLV 2019 Price/earings Pricelearnings 2018 m. Dividend yield Begin by selecting the correct formula Dividend yield Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal places--the nearest hundredth percent, X.XX Ratio Year WC KLV 2019 % Dividend yield Dividend yield 2018 % % n. Dividend payout Begin by selecting the correct formula. Dividend payout Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal places--the nearest hundredth percent, X.XX% Ratio Year WC KLV Dividend payout % % Dividend payout 2018 % % Requirement 2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Nature Gnome Company about investing in these comp Hantu Dan na hint linkiin shah allah and allant mahine hinna enem doht ninh than Choose from any list or enter any number in the input fields and then continue to the next question. 2019 Requirement 2. Compare the companies' performance for 2018 and 2018. Make a commendation to Nature Gnome Company about westing in these companies which company would be a better investment. The Water Company or Kiddie Lt Veste? Bose your answer on ability to pay current abilities, billy to el merchandise and collect receivables, ability to pay long term debit, profitability, and tractiveness as an investment Start by comparing each company's ability to pay currenties Select the appropriate ratios and identity which company has the stronger rute Review the ratios you called in Requirement1 A to pay currentes Povestment company with stronger ratio est compare each comes to al merchandise inventory and collect received there is and which company has the wronger A to se merchandise inventory and collect receive Ratios w wong