3 The balance sheets and income statements for two competing companies in the same Industry are presented below: MM Assets Current assets ...................................................... $ 50,000 $ 20.000 Property plant, and equipment ............................. 640,000 190.000 intangible assets .................................................. 10,000 __20_Q @120 mg Liabilities and shareholders eguiy Current liabilities ................................................... $ 30,000 $ 12,000 Noncurrent liabilities ............................................ 300,000 170,000 Common shares 200,000 200 Retained earnings ................................................ M M mean M Revenue ............................................................... $ 161,000 $ 80,500 Cost of goods sold ................................................ 56,350 40,250 Gross profit ........................................................... 104,650 40,250 Expenses Salaries expense ........................................... 37,000 15,300 Depreciation expense .................................... 30,000 10,000 Other operating expenses ............................. 8,000 2,980 Total operating expenses ..................................... 75,000 28,280 Prot from operations ........................................... 29.650 11,970 interest expense ............................................ (14.000) (8,800) Income tax expense ...................................... (3,500] (500) Prot ..................................................................... 1;; g g ggzg Instructions a. Calculate both companies' Debt to Total Assets ratio. b. Calculate both companies' Interest Coverage ratio. Comment on the two companies' solvency in comparison to each other. companies is a PUb'iC company, and the other is a private company. Identify two companies appears to be the public company and explain your oondusiom hat affects the extent to which it is nanced by debt in comparison to the c. d. One of the which of the Describe howt other company