1. Two companies competing in the same industry are evaluated by a creditor to get money and only one of the two companies will get the money from the creditor. The following tables give summary information from the financial statements of the two companies: 800 Beta Alfa Beta Alfa Company Company Company Company Data from the current year-end balance sheet Data from the current year's income statement Assets Cash $3,700 $6,600 Sales $132.000 $156,040 Accounts receivables, 7,280 11,280 Cost of goods sold 97,020 106,500 net Notes receivables 1,620 1,240 Interest expense 1,380 2,200 (trade) Merchandise inventory 16,688 26,300 Income tax 2,560 3,860 expense Prepaid expenses 1,190 Net income $31,040 $43,480 Plant and equipment, 56,800 60,680 Basic earnings per 1.18 0.809 net share Total assets $86,888 $107,290 Beginning-of-year data: Liabilities and Accounts $5,760 $10,640 stockholders' Equity receivable, net Current liabilities $12,068 $18,460 Notes receivable (trade) Long-term notes 15,960 20,000 Merchandise 10,920 21,280 payable inventory Common stock, $5 par 35,000 41,000 Total assets 77,600 74,500 value Retained earnings 23,860 27,830 Common stock, 35,000 41,000 $5 par value Total liabilities and $86,888 $107,290 Retained earnings 18,860 18,120 equity Required, answer the following questions with explanation (assume cash dividends is $3.72 and $4.12 for Beta and Alfa company respectiviley, and the share value for both companies is $25). For each part you need to use at least two ratios to support your answer, the more you use the better of you are a) Which of the two companies is able to meet its current debts on time? Why? b) Which of the two companies is able to collect its accounts receivables faster? Why? c) Which company having more cash tied in inventory? Why? d) Which of the two companies making more profit? Why? e) Which company is more efficient in its operation? Why