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Problem 13-5B Comparative ratio analysis Summary information from the financial statements of...

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Accounting

Problem 13-5B Comparative ratio analysis
Summary information from the financial statements of two companies competing in the same induatry follows.
Required
For both companies compute the (c) current ratio. (b) acid-test ratio. (c) accounts receivable tumover. (d) irventory turnover. (8) days. sales in inventory. and (f) days" sales uncollected Round to one decional place. Identifly the company you consider to be the better shontterm credit nist and expliain why.
For both companies compute the (a) proft margin ratio. (b) total asset furnover. (o) return on total assets, ard (d) return on equity. Assuming that each company paid cast dividends of $1.50 per share and each company's stock can be purchased at $25 per share. compute their (8) priceeamings ratios and (f) dividend yields. Round to one decimal place: for part b. round to two decimats. Ideratify which campany's stock you would recormend as the better investraent and explain why.
(2) Eall profn vampln, 9.25% pe, is is
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