Below are current year financial statements for two companies in the same industries and direct competitors. Both companies have been in operation approximately the same length of time. Company A Company B Balance Sheet Cash 31,000 16,000 Accounts receivable (net) 29,000 24,000 Inventory 87,000 29,000 Property and equipment, net 125,000 394,000 Other assets 79,000 298,000 Total assets 351,000 761,000 Current liabilities 91,000 47,000 Long-term debt (5% interest) 62,000 58,000 Capital stock ($5 par) 145,000 505,000 Contributed capital in excess of par 18,000 103,000 Retained earnings 35,000 48,000 Total liabilities and stockholders equity 351,000 761,000 Income Statement Sales revenue (1/3 of sales on credit) 452,000 799,000 Cost of goods sold (250,000) (396,000) Expenses (including interest and taxes) (161,000) (308,000) Net income 41,000 95,000 Selected data from prior year Accounts receivable (net) 16,000 33,000 Inventory 81,000 42,000 Property and equipment, net 110,000 375,000 Long-term debt 65,000 70,000 Other data Market price per share at end of current year $16 $13 Average income tax rate 25% 25% Dividends declared and paid in current year 22,000 88,000 Required: 1) Prepare a schedule reflecting a ratio analysis of each company. (ROE, ROA, Financial Leverage Percentage, EPS, Quality of income, Profit Margin, Fixed asset turnover ratio, Cash, Current, Quick, receivable turnover, inventory turnover, Times interest earned, Cash coverage, debt to equity, P/E, Dividend Yield) Compute all ratios for which you have enough data