Assume the following two companies compete in the same industry. The following information was drawn from the financial statements of the two companies at the end of the year: Company Lolia Incorporated Totsie Company Required: Assets 800,000 300,000 Liabilities 500,000 70,000 Stockholders Equity 300,000 230,000 Net Income 180,000 60,000 a. Compute the return-on-assets ratio for both companies. Based on these ratios, which company was more effective at using its assets to generate income? b. Compute the debt-to-assets ratio for both companies. Based on these ratios, which company has less financial risk? Note: For all requirements, round percentage answers to two decimals. Lolia Incorporated Totsie Company a. Return-on-Assets Ratio Effectiveness % % b. Debt-to-Assets Ratio % % Financial Risk