Data table Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Sharp Corporation stock or Express Company stock and have assembled the following data for the two companies. 9: (Click the icon to view the income statement data.) E (Click the icon to view data at end of current year.) :: (Click the icon to view data at beginning of current year.) Your strategy is to invest in companies that 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 on the results of ratio analysis Read the requirements. Selected balance sheet and market price data at end of current year: Sharp Express X Stock ! Current assets: Data table Data table Cash $ Casil 36,000 22,000 $ Im.) Short-term investments 16,000 7,000 188,000 Selected income statement data for the current year: Selected balance sheet data at beginning of current year: Current receivables, net two d Inventories Express Express Sharp 166,000 182,000 7,000 208,000 19,000 $ Sharp 596,000 $ 458,000 518,000 Balance sheet: Prepaid expenses Total current assets 386.000 Current receivables, net $ 444,000 407,000 Net sales (all on credit) Cost of goods sold Income from operations Interest expense Net income 88,000 145,000 $ 205,000 853,000 Total assets 194,000 196,000 906,000 70,000 15,000 984,000 927,000 Total current liabilities 367,000 332,000 65,000 37,000 nd thell 310,000 674,000 691,000 Inventories Total assets Long-term debt Preferred stock, 6%, $175 par Common stock, $1 par (115,000 shares) $5 par (10,000 shares) Total stockholders' equity 35,000 35,000 115,000 115,000 Total liabilities Preferred stock, 6%, $175 par Common stock, $1 par (115,000 shares) $5 par (10,000 shares) Total stockholders' equity Market price per share of common stock 50,000 50,000 Print Done 262,000 223,000 310,000 236,000 73.29 $ 8.55 $ company vers to = Days' sales in average Print Done = Sharp Express Print Done = d. Debt ratio Requirement 1. Compute the ratios for both companies for the current year and decide which company's stock better fits your investment strategy. Begin by computing the ratios, starting with the quick (acid-test) ratio. (Abbreviations used: Avg. = average, Cash* = cash and cash equivalents, Mkt = market, o/s = outstanding, SE = stockholders' equity, and ST = short-term.) a. Quick (acid-test) ratio Select the formula and then enter the amounts to calculate the quick (acid-test) ratios. (Round the ratios to two decimal places, X.XX.) + Quick ratio ( Sharp Express b. Inventory turnover Select the formula and then enter the amounts to calculate the inventory turnover for each company. (Round the ratios to two decimal places, X.XX.) = Inventory turnover Sharp Express c. Days' sales in average receivables Select the formula and then enter the amounts to calculate days' sales in average receivables for each company. (Use a 365-day year. Round intermediary calculations to the nearest whole number, X. Round your final answers to one decimal place, XX.) Days' sales in average receivables Sharp Express d. Debt ratio Select the formula and then enter the amounts to calculate the debt ratio for each company. (Enter the debt ratio in decimal form to two decimal places, XXX.) Debt ratio Sharp Express e. Times-interest-earned ratio Select the formula and then enter the amounts to calculate the times-interest-earned ratio for Express. (Round the ratio to one decimal place, X.X.) Times-interest-earned ratio Express = f. Return on common stockholders' equity Select the formula and then enter the amounts to calculate the return on common stockholders' equity (ROE) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Enter the ROE as a percentage rounded to the nearest one-tenth percent, X.X%.) % % ( ROE Sharp ( Express ( g. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for each company. (Complete all answer boxes. If an account has a zero balance, enter a "0". Round EPS to two decimal places, X.XX.) ( EPS Sharp ( Express ( = h. Price-earnings ratio Select the formula and then enter the amounts to calculate the price-earnings (P/E) ratio for each company. (Enter amounts in the formula to two decimal places, X.XX, but then round the P/E ratios to one decimal place, XX, as needed.) P/E ratio Sharp Express Which company's stock better fits your investment strategy? The common stock of seems to fit the investment strategy better. Its price-earnings ratio is and