Water Way Company wants to invest some of its excess cash in trading securities and is considering two investments, TheRow Company (RCRC) and Beguiling Life Vests(BLVBLV).The income statement, balance sheet, and other data for both companies follow for 2019and 2018, as well as selected data for 20172017:

The Row Company				Beguiling Life Vests
	Comparative Financial Statements				Comparative Financial Statements
	Years Ended December 31,				Years Ended December 31,
	2019	2018	2017		2019	2018	2017
Income Statement
Net Sales Revenue	$430,382	$425,550			$410,060	$383,680
Cost of Goods Sold	258,417	256,247			299,890	280,450
Gross Profit	171,965	169,303			110,170	103,230
Operating Expenses	153,440	151,362			78,840	70,160
Operating Income	18,525	17,941			31,330	33,070
Interest Expense	870	795			2,720	2,940
Income before Income Tax	17,655	17,146			28,610	30,130
Income Tax Expense	5,115	4,722			8,730	8,660
Net Income	$12,540	$12,424			$19,880	$21,470
Balance Sheet
Assets
Cash and Cash Equivalents	$69,240	$70,415			$65,749	$55,700
Accounts Receivable	44,710	44,490	$44,120		39,840	38,700	$36,470
Merchandise Inventory	79,950	66,300	76,340		68,580	65,220	59,910
Other Current Assets	15,420	16,625			24,281	37,170
Total Current Assets	209,320	197,830			198,450	196,790
Long-term Assets	90,448	90,346			116,780	116,700
Total Assets	$299,768	$288,176	$276,678		$315,230	$313,490	$310,920
Liabilities
Current Liabilities	$69,540	$60,250			$90,800	$90,060
Long-term Liabilities	31,640	29,990			96,350	105,950
Total Liabilities	101,180	90,240			187,150	196,010
Stockholders' Equity
Common Stock	72,840	80,860			111,490	102,430
Retained Earnings	125,748	117,076			16,590	15,050
Total Stockholders' Equity	198,588	197,936	197,700		128,080	117,480	103,900
Total Liabilities and
Stockholders' Equity	$299,768	$288,176			$315,230	$313,490
Other Data
Market price per share	$21.02	$33.52			$46.04	$51.38
Annual dividend per share	0.34	0.31			0.52	0.44
Weighted average number of
shares outstanding	9,300	8,800			9,300	8,800

1.	Using the financial statements given, compute the following ratios for both companies for 20192019 and 20182018. 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
	l.	Price/earnings ratio
	m.	Dividend yield
	n.	Dividend payout
2.	Compare the companies' performance for 20192019 and 20182018. Make a recommendation to Water WayWater Way Company about investing in these companies. Which company would be a better investment, The RowRow Company or BeguilingBeguiling Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to paylong-term debt, profitability, and attractiveness as an investment.