Application Problem 12-17A a (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): Cash Accounts receivable Inventory Prepaid expenses Capital assets (net) Current liabilities Long-term debt Share capital-common shares Retained earnings Sales (all credit sales) Cost of goods sold Interest expense Taxes (30%) Net income A-Tec Bresci 2020 2019 2020 2019 $9 $0 $26 $23 199 154 13190 13199 121 101 5 5 5 5 358 296 231 147 104 137 46 53 180 224 0 107 107 228 228 311 86 240 85 2,058 1,221 1,246 1,237 1,150 950 874 970 21 23 0 0 7953 70 61 184 124 163 142 (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. (Round current ratio, accounts receivable turnover, inventory turnover, interest coverage to 2 decimal places, e.g. 14.84 and debt to equity, gross margin, profit margin, return on assets and return on equity to 1 decimal place, e.g. 14.8%.) 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 A-Tec Bi-Sci 2020 2019 2020 2019 i. Current ratio ii. Accounts receivable turnover times times times times iii. Inventory turnover times times times times iv. Debt to equity v. Interest coverage vi. Gross margin vii. Profit margin viii. Return on assets ix. Return on equity