answer for question (b) based on the ratios, perfoorm an analysis to determine which loan is preferable to the bank. is it A or B?

Assume that your team of financial and accounting analysts is working in the loan department of a local bank. A. You have been asked to analyze the two companies by calculating the following ratios (see Exhibit 13-5 on page 617 in chapter 13) for which sufficient information is available. Please round all calculations to two decimal places. (60 points): 1. Net profit margin a. 0.10 b. 0.13 2. Gross profit percentage a. 0.40 b. 0.46 3. Fixed assets turnover (a) 1.45 (b) 1.75 4. Return on equity (a) 14.03 (b) 17.32 5. Earnings per share (a) 3.33 (b) 3.33 6. Price/earnings ratio (a) 7. Receivables turnover (a) 15.68 times (b) 18.66 times 8. Days to collect (a) 23.27 days (b) 19.65 days 9. Inventory turnover (a) 4.68 (b) 4.76 10.Days to sell (a) 77.99 days (b) 76.68 days 11. Current ratio (a) 0.085 (b) 0.10 12.Debt-to-assets (a) 1.58 (b) 5.73 B. Based on the ratios, perform an analysis to determine which loan is preferable to the bank. Consider in your analysis the profitability, liquidity, and solvency ratios. (20 points)