Water Way Company wants to invest some of its excess cash in trading securities and is considering two investments, The Blade Company (BC) and Very Life Vests (VLV). 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. 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. Earnings per share I. Price/earnings ratio m. Dividend yield n. Dividend payout 2. Compare the companies' performance for 2025 and 2024. Make a recommendation to Water Way Company about investing in these companies. Which company would be a better investment, The Blade Company or Very 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 - Data table The Blade Company Comparative Financial Statements Years Ended December 31, Very Life Vests Comparative Financial Statements Years Ended December 31, 2025 2024 2023 2025 2024 Income Statement Net Sales Revenue $ 430,642 $ 425,290 $ 410,120 $ 383,680 Cost of Goods Sold 258,854 256,417 299,560 280,010 Gross Profit 171,788 168,873 110,560 103,670 Operating Expenses 153,550 151,113 78,270 70,500 Operating Income 18,238 17,760 32,290 33,170 825 710 Interest Expense 2,750 2,970 Income before Income Tax 17,413 17,050 29,540 30,200 Income Tax Expense 5,148 4,850 8,720 8,660 $ 12,265 $ 12,200 $ 20,820 $ 21,540 Net Income 2023 Balance Sheet Assets Cash and Cash Equivalents $ 69,110 $ 70,650 65,351 $ 55,690 Accounts Receivable 44,750 44,440 $ 44,140 39,800 38,660 $ 36,450 Merchandise Inventory 79,900 66,340 76,370 68,540 65,200 60,000 Other Current Assets 15,570 16,460 24,709 37,150 Total Current Assets 209,330 197,890 198,400 196,700 Long-term Assets Total Assets 90,650 90,500 116,900 116,588 $ 299,980 $ 288,390 $ 315,300 $ 313,288 $ 276,456 $ 310,810 Liabilities Current Liabilities $ 69,500 $ 60,260 Long-term Liabilities 31,610 29,900 Total Liabilities 101,110 90,160 $ 90,890 $ 90,000 96,370 105,850 187,260 195,850 Stockholders' Equity Common Stock 72,800 80,840 111,520 102,500 Retained Earnings 126,070 117,390 16,520 14,938 Total Stockholders' Equity 198,870 198,230 128,040 117,438 197,620 103,870 Total Liabilities and Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and $ 299,980 $ 288,390 72,800 80,840 111,520 102,500 126,070 117,390 16,520 14,938 198,870 198,230 128,040 117,438 197,620 103,870 $ 315,300 $ 313,288 Stockholders' Equity Other Data Market price per share $ 20.86 $ 33.74 45.92 $ 51.14 Annual dividend per share 0.35 0.33 0.45 0.38 Weighted average number of shares outstanding 9,100 7,100 9,100 7,100 Print Done