1.You are a fresh analyst hired by the CFO of a small to midsized company. She is aware of the fact you wrote a paper of Financial Statement analysis and wants to check your financialknowledge as well as common sense:There are two firms, A and B.A is a healthy, well -fundedand profitable firm.B, on the other hand, is cash starved,facing potential (but not yet) bankruptcy.She has information about the following classes of ratios for both firms: Liquidity, Asset Management, Debt Management, Profitability and Market Value Ratios.She said to you," I don't have time to look at all these ratios, I would like you to rank order three classes of ratios in each case (One ranking for firm A and another ranking for firm B) based on the particular situation each firm is in (healthy vs. failing).I understand that the two sets could be quite different.I would like you to explain why you choose that particular rank ordering in each case.While ranking, you may simply indicate the class of ratios (for example, profitability), rather than a specific ratio within that class, such as Return on Assets (ROA)."