1. The following are the fundamental ratios of two companies. What conclusions about the financial performance of the two companies can you draw? Ratio Company A Company B QUICK RATIO 0.77 0.67 CURRENT RATIO 1.44 1.33 SG&A/SALES 0.38 0.25 RECEIVABLES TURNOVER 11.36 8.97 INVENTORIES TURNOVER 5.13 4.97 NET SALES/WORKING CAPITAL 3.55 2.88 NET SALES / TOTAL ASSETS 0.21 0.29 NET SALES /EMPLOYEES 129,587 137.543 TIMES INTEREST EARNED 3.77 2.83 TOTAL ASSETS/EQUITY 2.34 3.66 NET INCOMENET SALES 0.06 0.08 NET INCOME / TOTAL ASSETS 0.04 0.06