Water Way Company wants to invest some of its excess cash in trading securities and is considering two investments, The Kayak Company (KC) and Amateur Life Vests (ALV). The income statement, balance sheet, and other data for both companies follow for 2019 and 2018, as well as selected data for 2017: (Click the icon to view the data.) Read the requirements. Data Table 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 Requirements 1. Using the financial statements given, 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 a. b. Cash ratio c. Inventory turnover d. Accounts receivable turnover e. Gross profit percentage f. Debt ratio g. Debt to equity ratio 2018 The Kayak Company Comparative Financial Statements Years Ended December 31, 2019 2017 2019 2018 Amateur Life Vests Comparative Financial Statements Years Ended December 31, 2017 Income Statement Net Sales Revenue $ 430,146 $ 425,440 258,854 256,417 410,120 $ 383,400 299,120 280,670 Cost of Goods Sold Gross Profit 171,292 169,023 111,000 102,730 153,110 161,963 78,380 70,490 Operating Expenses Operating Income 18.182 17,060 32,620 32,240 800 790 2,810 2,910 Interest Expense Income before Income Tax 17,382 5,159 16,270 4,180 29,810 8,770 29,330 8,620 Income Tax Expense $ 12.223 $ 12,090 21,040 $ 20,710 Net Income Rate of return on common stockholders' equity h. Profit margin ratio L Asset turnover ratio j. k. I m. Dividend yield . Eamings per share Priceleamings ratio Dividend payout 2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Water Way Company about investing in these companies. Which company would be a better investment, The Kayak Company or Amateur Life Vests? Base your answer on ability to pay current liablities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. Balance Sheet Assets Cash and Cash Equivalents Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Print Done $ 69,110 $ 70,377 $ 65,451 $ 55,030 44,730 44,440 $ 44.130 39,820 38,640 $ 38,470 79,870 66,390 76,360 68,570 65,260 59,950 15,600 16,623 24,659 37,790 209,310 197,830 198,500 196,720 90,124 90,916 116,730 116,130 $ 299,434 $ 288,746 315,230 $ 312,850 $ 276,234 $ 310,010 Liabilities Current Liabilities Long-term Liabilities $ 69.550 $ 31,610 60,260 29,910 $ 90,860 $ 90,040 98,350 105,850 101,160 90,170 187,210 195,890 Total Liabilities Stockholders' Equity Common Stock Retained Eamings 72,770 80,880 125,504 117,698 198,274 198,576 111,520 102,400 16,500 14,560 128,020 116,960 Total Stockholders' Equity 197,640 103,860 Total Liabilities and $ 299,434 $ 288,746 315,230 $ 312,850 Stockholders' Equity Other Data Market price per share $ Annual dividend per share 21.02 $ 0.36 33.96 0.34 $ 46.42 $ 51.14 0.52 0.44 Weighted average number of shares outstanding 8,800 7,800 8,800 7,800