You're anxious to start investing in the stock market. You decide to buy stocks in companies that you are personally int

[answerhappygod]

You're anxious to start investing in the stock market. You
decide to buy stocks in companies that you are personally
interested in. You need to choose between your favorite shoe
company, SweetFeet, and your favorite sport drink company,
SportsAde. Upon looking at the balance sheet for each company, you
see that SportsAde's assets total $3.5 million, and their
liabilities equal $500,000. SweetFeet's assets are only $2 million,
and their liabilities equal $1.8 million. However, you know from
your business classes that you should also look at the income
statements for each company. Upon looking at the income statements
for both companies, you find that SportsAde's revenues are less
than their expenses, and the company has a loss of $2 million.
SweetFeet's revenues are $2.9 million, and their expenses are only
$1.2 million, giving them a profit of $1.7 million. Looking back at
previous income statements show similar trends for each company.
Which company do you choose to invest in and why?
a. SportsAde because analyzing both the balance sheet and income
statement show that they have a healthier financial position than
SweetFeet.
b. SweetFeet because analyzing both the balance sheet and income
statement show that they have a healthier financial position than
SportsAde.
c. SweetFeet because the income statement shows that they have a
higher profit.
d. SportsAde because the balance sheet shows that their assets are
higher than SweetFeet's assets.
e. SportsAde because SweetFeet is continually losing money.