AP-16A LO45 Chicken Inc. and Egg Inc. are both information for the current year. . are both in the toy retail business. All sales are on credit. Below is select financial "formation for th Chicken Inc. Egg Inc. $150,000 48.750 101,250 $135,000 41.850 93,150 Income Statement Sales Cost of Goods Sold Gross Profit Expenses Salaries Expense Depreciation Expense Advertising Expense Interest Expense Total Expenses Income before Income Tax Expense Income Tax Expense Net Income 22.500 15.000 7,500 6,750 51.750 49,500 26.250 $23.250 27,000 13.500 6,750 5,130 52.380 40,770 24.300 516 470 Balance Sheet Cash Accounts Receivable Merchandise Inventory Equipment Total Assets 540,850 15,000 34,500 85,800 $126.150 $24,510 9,000 20,125 51,480 $105 115 Accounts Payable 21,000 32,000 Unearned Revenue 27,800 18,670 Long-Term Liabilities 39,350 15,635 Stockholders' Equity 88.000 38,810 Total Liabilities and Stockholders' Equity 5176150 $105.115 Required a) Calculate each ratio listed below for each company and indicate which company is better for each one. For any ratios that require an average value from the balance sheet accounts, just use the single figure provided for each company. Chicken Inc. Egg Inc. Which company is better? Gross Profit Margin Net Profit Margin Return on Equity (ROE) Return on Assets (ROA) Asset Turnover Current Ratio Quick Ratio Debt-to-Equity Ratio Debt-to-Total-Assets Ratio Days'Sales Outstanding Accounts Receivable Turnover Days Sales in Inventory Inventory Turnover Financial Statement Analysis b) Examining all of the ratios, explain which company has a stronger financial position in regards to the Chapter 20 categories. 1. Profitability ii. Liquidity iii. Managerial performance iv. Solvency