Your strategy is to invest in companies thst have low price earnings ratios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends orn the results of ratio analysis. Compute the following ratios for both companies for the current year and decide which company's stock better fits your investment strategy a. Acid-test ratio b. Inventory turnover c. Days' sales in receivables d. Debt ratio e. Earnings per share of common stock LX Rose Current assets: Cash 29,200 $20,500 Short-term investments 42,000 22,200 Current receivables, net 38,000 44,000 67,000 105,000 Prepaid expenses Total current assets 178,200 $ 196,000 Total assets Total current liabilities 105,000 102,000 Total liabilities 105,000$ 138.000 Common stock: $1 par (10,000 shares) $10,000 $1 par (14,000 shares) $ 14,000 $ 195,000 Total stockholders' equity $138,000 Total Liabilities and SVE 300,000 $27200 Market price per share $8000 $85 10 Income Statement $ 1.100,000 Sales, net 800,000 Cost of Goods Sold Gross Profit 300,000 650,000 S & A Expenses Operating Income 240,000 430,000 Other Gains 5,000 10,000 Other Losses Eamings before Taxes 242,500 440,000 Income Taxes Net Income