Wicked Wid Company wants to invest some of its excess cash in trading securities and is considering two investments, The Water Company (WC) and Flashy Lito Vests (FLV). The Income Click the icon to view the data.) companies follow for 2019 and 2018, as well as selected data for 2017: Road the requirements Requirement 1. Computo each ratio for both companies for 2010 and 2016. Assume sales are credit sales. Round all ration to two decimal places a. Current ratio Begin by selecting the correct formula Current ratio 1 of 1 (0 complete) HW Score: 0%, 0 of 27 pts 0 ng securities and is considering two investments. The Water Company (WC) and Flashy Life Vents (FLV). The income statement, balance sheet, and other data for both 2018. Assume all sales are credit sales. Round all ratios to two decimal places. Data Table ing sec 7: bet, ar The Water Company Comparative Financial Statements Years Ended December 31, Flashy Life Vests Comparative Financial Statements Years Ended December 31, 2019 2018 2017 2018. A 2019 2018 2017 Income Statement Net Sales Revenue $ $ 430,446 S 258,672 425,830 256,790 410,550 $ 383,400 299,910 280.780 171.774 169,040 151,963 110,640 78.840 153,000 102,620 70,050 Cost of Goods Sold Gross Profit Operating Expenses Operating Income Interest Expense Income before Income Tax Income Tax Expense 18,774 885 17,077 790 31,800 2,740 32,570 2,940 17,889 5,104 16,287 4,690 29,060 8,750 20,310 $ 29,630 8.700 20,930 $ Net Income 12,785 $ 11,597 - Balance Sheet Assets Cash and Cash Equivalents ps for aces. 68,770 $ $ 65,934 $ 70,650 A AKO 54,810 Anunnakin 14 000 4410 20.00 20.01 20 ARO Print Done Requirement Round 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. 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 2019 and 2018. Make a recommendation to Wicked Wild Company about investing in these companies. Which company would be a better investment, The Water Company or Flashy 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 the correct formula 365+ Accounts receivable turnover ratio Annual dividend per share + Earnings per share Annual dividend per share +Market price per share (Cash + Cash equivalents) + Total current liabilities (Cash + Short-term investments + Accounts receivable, net) - Total current liabilities Cost of goods sold + Average merchandise inventory Gross Profit + Net sales revenue Market price per share of common stock + Earnings per share Net credit sales + Average net accounts receivable Net income + Net sales (Net income - Preferred dividends) + Average common stockholders' equity (Net income - Preferred dividends) + Weighted average number of common share outstanding Net sales + Average total assets Total current assets + Total current liabilities Total liabilities + Total asset drop-dow Total liabilities + Total equity Clear All MacBook Air 1 e of its exce well as select 0 Data Table statement, balance she moth companie $ Balance Sheet Assets Cash and Cash Equivalents Accounts Receivable Merchandise Inventory Other Current Assets 70,650 44,450 $ 66,390 16,360 44,120 76.300 $ 68,770 S 44.800 79,900 15,920 209,390 90,266 $ 299,656 S 36,450 59,990 65,934 $ 54,810 39,800 38,610 S 68,570 65,300 24,146 38,000 198.450 196.720 116,830 116.670 315,280 S 313,390 $ Total Current Assets 197,850 90,634 Long-term Assets 288,484 $ $ 278,890 310,810 $ $ 69,520 $ 31,690 101,210 60,260 29,900 90,160 90,900 $ 90,090 96,280 105,920 187,180 196.010 Total Assets Liabilities Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and 72,770 125,676 80,820 117,504 111,500 16,600 102,400 14.980 198,446 198,324 197,690 128, 100 117,380 103,820 Stockholder! Fut $ 299,650 $ 288,484 $ 315,280 S 313,390 hen click Chel Print Done Data Table * tatement, balance me of its excel ell as selecte Total Current Assets 209,390 90,266 197,850 90,634 198,450 116,830 196,720 116,670 Long-term Assets oth companie $ 299,656 $ 288,484 $ $ 276,890) 315,280 $ 313,390 310,810 Total Assets Liabilities Current Liabilities $ $ 69,520 S 31,690 60,260 29,900 Long-term Liabilities 90,900 $ 96,280 187,180 90,090 105,920 196,010 101,210 90.160 Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 72,770 125,676 198,446 80,820 117,504 111,500 16,600 128,100 102,400 14,980 117,380 198,324 197,690 103,820 $ 299,656 $ 280,484 S 315,280 S 313,390 $ $ 46.42 $ 51.56 Other Data Market price por share Annual dividend per share Weighted average number of shares outstanding 21.62 $ 0.31 34.08 0.30 0.46 0.37 8,700 7,700 8,700 7,700 en click Che Print Done