Chapter D, Problem 28AP

1 a.

To determine

Compute the acid test ratio for Company D and Company E for the current year.

1. b

To determine

Compute inventory turnover ratio for Company D and Company E.

1. c

To determine

Compute days’ sales in receivable for Company D and Company E.

1 d.

To determine

Compute debt ratio for 2018 and 2017.

1. e

To determine

Compute earnings per share of common stock for Company D and Company E.

1.  f

To determine

Compute price/earnings ratio for Company D and Company E.

1. g

To determine

Compute dividend/ payout ratio for Company D and Company E.

2

To determine

Determine the Better investment strategy