[) 1210 e)cel The 2020 financial statements for Rand and Tand companies are summarized below: RetainedearningsOthercomprehensiveincomeTotalliabilitiesandshareholdersequity38,0002,000$880,0007,0001,000$292,000 Statement of Eanings Sales revenue (on credit) (1/2) $800,000 (y) $280,000 Cost of sales (480,000) (150,000) Expenses (including interest and income tax) (240,000) (95,000) Net earnings $80,000 $35,000 Selected Data from the 2019 Statements Accounts receivable, net \$ 47,000 $11,000 Longterm debt (12\%) 190,000 55,000 Inventory 95.000 38,000 Other Data Share price at end of 2020 $14.00 $11.00 Income tax rate 30% 30% Dividends declared and paid in 2020 \$ 20,000 $9,000 Number of common shares during 2020 24,000 10.500 These two companies are in the same liae of business and in the same province but in different cites. Each company has been in operation for about 10 year. Rand Compury is audited by a national accounting firm, Tand Coempary is asdited by a local accounting firm. Both companies received an unqualified opinion (ic, the independent auditors found nothing wrone) on the financial statements. Rand Company wants to borrow $75,000 cash and Tand Company peeds $30,000. The loans will be for a twoyear period and are needed for working capital purposes. Paneth Reyuimt 1. Complete a schedule that reflects a ratio analyas of cach coimpany. Compule the ratios descussed in the chapter 2 Nsume that you work in the loans department of a local bank. You have been asked to analyze the situation and recomenend mhich loan is preferable. Bssed on the data given, your analysis petpared in (1), and any other ioformation, give your choice and provide a supporting explanation