Based on the graph, which company would you rather invest in? Why? Make sure you compare the profitability, liquidity, solvency/leverage aspects of these companies with appropriate ratios.

oints) RatioAnalysis You are interested in investing in a regional hotel company and have investigated the financial statements of four potential investments. Use the information in the table below to answer the questions. Hotel N Hotel J Hotel C Hotel W Information from the income statement Total revenue $10,099,000 $3,816,000 $428,806 $1,277,550 Total expenses 9,503,000 3,618,000 354,461 1,822,748 Information from the balance sheet Current assets 1,946,000 1,020,000 526,549 68,629 Total assets 8,668,000 8,183,000 262,388 3,783,127 Current liabilities 2,356,000 895,000 101,091 693,809 Total liabilities 3,089,318 5,944,000 4,587,000 456,441 *Note: total revenue net sales; the interest expenses and income taxes are included in the total expenses. 1. (12') Calculate the following accounts and financial ratios. Write the final values in the table below, show your calculation in the blank area on the next page for partial credits only. Hotel C Hotel J Hotel W Hotel N 545.198 $690,000 Ia8,000 T4,245 1. Net income after tax (net profit or net loss) -4a lo87 5,119. 17.347 54.a31. 2. Return on sales tu93,809 3. Owners' equity -,081,000a.as,00014,U83 8.841. 14 1009 4. Return on equity 0.74 I.14 O.loS 0. 3 5. Current ratio 4.46 -a.35 6. Debt-to-equity ratio 6/7 2. (8') Which company would you rather invest in? Why? Make sure you compare the profitability, liquidity, solvency/leverage aspects of these companies with appropriate ratios. Hotel N hastue higuest EPs ud igu retun nequity 7/7