Wonder Wilderness Company wants to invest some of its excess cash in trading securities and is considering two investments, The Kayak Company (KC) and Beguiling Life Vests (BLV). 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. 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 Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year KC BLV Current 2019 2018 Current b. Cash ratio Begin by selecting the correct formula. Cash ratio Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year KC BLV Cash Cash 2019 2018 | c. Inventory turnover Begin by selecting the correct formula. Inventory turnover = Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year KC BLV Inventory turnover Inventory turnover 2019 2018 C d. Accounts receivable (AR) turnover Begin by selecting the correct formula. AR turnover Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year KC BLV AR turnover 2019 2018 AR turnover e. Gross profit percentage Begin by selecting the correct formula. Gross profit % Now, compute the ratio for both companies for both years. (Round your answers to two decimal placesthe nearest hundredth percent, X.XX%.) Ratio KC BLV Year 2019 2018 Gross profit % Gross profit % % f. Debt ratio Begin by selecting the correct formula. Debt ratio Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal placesthe nearest hundredth percent, X.XX%.) Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal placesthe nearest hundredth percent, X.XX%.) Ratio KC BLV Debt Year 2019 2018 L % % Debt g. Debt to equity ratio Begin by selecting the correct formula. Debt to equity ratio = Now, compute the ratio for both companies for both years. (Enter your answers as a rate and not as a percentage. Round your answers to two decimal places, X.XX.) Ratio Year KC BLV Debt to equity 2019 Debt to equity 2018 C D h. Profit margin ratio Begin by selecting the correct formula. Profit margin ratio Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal placesthe nearest hundredth percent, X.XX%.) Ratio Year 2019 2018 Profit margin Profit margin % i. Asset turnover ratio Begin by selecting the correct formula. Asset turnover ratio = Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio KC BLV Year 2019 Asset turnover Asset turnover 2018 j. Rate of return on common stockholders' equity (ROR on common SE) Begin by selecting the correct formula. ROR on common SE = Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal placesthe nearest hundredth percent, X.XX%.) KC BLV Ratio ROR on common SE ROR on common SE Year 2019 2018 k. Earnings per share Begin by selecting the correct formula. Earnings per share = Now, compute the ratio for both companies for both years. (Round your answers to two decimal places, X.XX.) Ratio Year KC BLV Earnings per share 2019 Earnings per share 2018 1. Price/earnings ratio Begin by selecting the correct formula. 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 s 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 2019 ratios.) Review the ratios you calculated in Requirement 1. Stock as an investment Potential investment company Ratios with stronger ratio Conclusion and recommendation: Overall, companies appear to be stable, with fluctuation between the two years. equity ratios. Since Wonder Wilderness Company is looking for a short-term investment in trading securities, it should buy appears to be a greater risk in the long-term due to its higher debt and debt to V because it has a higher dividend yield and dividend payout. Choose from any list or enter any number in the input fields and then continue to the next question. Questi i Data Table - X sts (BLV). The income sta nts to in both col a.) The Kayak Company Comparative Financial Statements Years Ended December 31, 2019 2018 2017 Beguiling Life Vests Comparative Financial Statements Years Ended December 31, 2019 2018 2017 ment company's ratios is stment n the ne Income Statement Requi Net Sales Revenue $ $ 430,268 $ 258,977 425,060 256,532 410,120 $ 299,120 383,440 280,450 ok as a Cost of Goods Sold Gross Profit 171,291 153,550 168,528 151,853 111,000 78,160 102,990 70,270 Operating Expenses Operating Income 17,741 855 16,675 755 32,840 2,820 32,720 2,990 Interest Expense Income before Income Tax 16,886 5,159 15,920 4,220 29,730 8,700 on: 30,020 8,810 21,210 $ Income Tax Expense Is appe $ 11,727 $ 11,700 $ 21,030 m due to its higher debt al nd yield and dividend pay rness o Net Income y nume Print Done Wonder Wilderness Company wants to invest some of its excess cash in trading securities and is considering two investments, The Kayak Company (KC) and Begi 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. Current ratio mar UIVIUtru per anar cargo por marc Now, compute the ratio for bi Annual dividend per share / Market price per share (Cash + Cash equivalents) / Total current liabilities Ratio (Cash + Short-term investments + Accounts receivable, net) / Total current liabilities Current Cost of goods sold / Average merchandise inventory Current Gross Profit / Net sales revenue Market price per share of common stock /Earnings per share b. Cash ratio Net credit sales / Average net accounts receivable Begin by selecting the correc Net income / Net sales (Net income - Preferred dividends) / Average common stockholders' equity Cash ratio (Net income - Preferred dividends) / Weighted average number of common share outstanding Now, compute the ratio for b. Net sales / Average total assets Total current assets/Total current liabilities Ratio Total liabilities / Total asset Cash Total liabilities/Total equity ranh 2010 Choose from any list or enter any number in the input fields and then continue to the next auestion. Wonder Wilderness Company wants to invest some of its excess cash in trading securities and is considering two investments, The Kayak Company (K balance sheet, and other dat (Click the icon to view th 365 / Accounts receivable turnover ratio Read the requirements. Annual dividend per share / Earnings per share Annual dividend per share / Market price per share m. Dividend yield (Cash + Cash equivalents) / Total current liabilities (Cash + Short-term investments + Accounts receivable, net) / Total current liabilities Begin by selecting the correc Cost of goods sold / Average merchandise inventory Gross Profit / Net sales revenue Dividend yield Market price per share of common stock / Earnings per share Now, compute the ratio for b Net credit sales / Average net accounts receivable hundredth percent, Net income / Net sales Ratio (Net income - Preferred dividends) / Average common stockholders' equity Dividend yield (Net income - Preferred dividends) /Weighted average number of common share outstanding Dividend yield Net sales / Average total assets Total current assets / Total current liabilities n. Dividend payout Total liabilities / Total asset Begin by selecting the correl Total liabilities / Total equity Dividend payout Now, compute the ratio for both companies for both years. (Enter your answers as a percentage to two decimal placesthe nearest hundredth percent, VILLIVU ULIVU, LIIV VUIVI VURU IVI VVU VIIULIVU IVIVUI LUIU UIIULUI, UU VOI UUUUUUUUUUUUUU with stronger ratio Accounts receivable turnover Asset turnover ratio Cash ratio Current ratio Debt ratio Debt to equity ratio Dividend payout Dividend yield Earnings per share Gross profit percentage Inventory turnover Pricelearnings ratio Profit margin ratio Rate of return on common stockholders' equity ot. Select the appropriate ratios and identify which company has the s debt Potential investment company with stronger ratio Compare the potential investment companies in terms of profitability. Select the appropriate ratios and identify which comp: tock as an investment. Select the appropriate ra comparison on the 2019 ratios.) Accounts receivable turnover Asset turnover ratio Cash ratio Current ratio Debt ratio Debt to equity ratio Dividend payout Dividend yield Earnings per share Inventory turnover Pricelearnings ratio Profit margin ratio Rate of return on common stockholders' equity nt Potential investment company with stronger ratio put fields and then continue to the next que Ratios Conclusion and recommendation: Overall, V companies appear to be stab equity ra derness Company is le both Choose f neither of the any number in the in stable, with y is looking fc fluctuation between the two ye stment in trading securit little he input field significant Je to the next questio This Question: 15 pts