Compare the potential investment companies in terms of profitability. Select the appropriate ratios and identify which company has the stronger ratio. Review the ratios you calculated in Requirement 1. Profitability Potential investment company Ratios with stronger ratio Now compare each potential investment company's stock as an investment. Select the appropriate ratios and identify which company has the stronger ratio. (If one of the investment company's ratios is stronger than the other in one year but weaker in the next, base the comparison on the 2025 ratios.) Review the ratios you calculated Requirement 1 Stock as an investment Potential investment company Ratios with stronger ratio Conclusion and recommendation: Overall, companies appear to be stable, with V fluctuation between the two years. ? because it has a higher dividend yield and dividend payout. appears to be a greater risk in the long-term due to its higher debt and debt to equity ratios. Since Happy Camper Company is looking for a short-term investment in trading securities, it should buy Current Liabilities $ $ 69,560 $ 31,690 60.220 29,950 90,900 $ 96,300 90,050 105,860 The Pull Company Comparative Financial Statements Years Ended December 31, Floatsy Life Vests Comparative Financial Statements Years Ended December 31, Long-term Liabilities 101,250 90,170 187,200 195,910 Total Liabilities Stockholders' Equity 2025 2024 2023 2025 2024 2023 Income Statement Common Stock 72,760 125,758 80,820 117,756 111,520 16,570 102,500 14,758 Net Sales Revenue $ 430.780 $ 258,790 425,060 256,977 $ 410,120 $ 383,440 299,120 280,910 Retained Earnings Total Stockholders' Equity ' Total Liabilities and 198,518 198,576 197,700 128,090 117,258 103,890 Cost of Goods Sold Gross Profit Operating Expenses 171.990 153,550 168,083 151,792 111,000 78,720 102,530 70,500 $ 299,768 $ $ 288,746 315,290 $ Stockholders' Equity 313,168 Operating Income 18,440 16,291 32,280 32,030 870 770 2.740 2,920 Other Data Interest Expense Income before Income Tax 17,570 29,540 29.110 Market price per share $ 21.44 $ 34.20 $ 46.30 $ 51.14 15,521 4,920 5,082 8,790 8,700 0.33 0.31 0.49 0.43 Income Tax Expense Annual dividend per share Weighted average number of shares outstanding 12,488 $ $ 10,601 $ Net Income 20,410 20,750 $ 8,900 7,400 8,900 7,400 Balance Sheet Assets $ 68,480 $ 70,172 Cash and Cash Equivalents Accounts Receivable 65,351 $ 39,860 44,750 44,460 $ 44,170 36,400 55,580 38,670 $ 65,270 37,250 76,370 59,940 Merchandise Inventory Other Current Assets Total Current Assets 79,940 16,190 66,340 16,868 68,510 24,729 209,360 90,408 197,840 90,906 198,450 116,840 196.770 116,398 Long-term Assets $ 299,768 $ 288,746 $ 276,346 315,290 $ 313,168 S 310,810 Total Assets Liabilities
