AP12-17A (Ratio analysis of two companies) You have obtained the financial statements of A-Tec and Bi-Sci, two new companies in the high-tech industry. Both companies have just completed their second full year of operations. You have acquired the following information for an analysis of the companies (amounts in thousands): Accounts receivable ATB Sci 2020 2019 2020 2019 $ 10 $0 $ 25 $ 25 195 340 120 100 130 100 110 100 55 55 350 200 230 100 110 1250 50 Prepaid expenses Capital Currenties Loodete Share capital com Rendering Sales ( cedit ) Cost of goods sold Interest expense has 100 100 280 100 220 120 1.500 1.300 1.250 1.200 1,250 000 910 900 7 180 56 110 6455 150 15 Net income Required a. Calculate the following ratios for the two companies for the two years. For 2019, assume the current year amount is equal to the average where required. i.Current ratio ii.Accounts receivable turnover iii.Inventory turnover iv.Debt to equity v.Interest coverage vi. Gross margin vii.Profit margin viii. Return on assets ix. Return on equity b. Write a brief analysis of the two companies based on the information given and the ratios calculated. Be sure to discuss issues of short-term liquidity, activity, solvency, and profitability. Which company appears to be the better investment for the shareholder? Explain. Which company appears to be the better credit risk for the lender? Explain. Is there any other information you would like to have to complete your analysis