Below are the comparative balance sheets for Redmond Corporation and Wishart Company in the year 2004. Answer the following questions using the information given in these balance sheets.

	Redmond Corp.	Wishart Company
Current Assets
Cash and equivalents	200	300
Accounts Receivable	1,100	2,400
Inventory	4,600	2,000
Total Current Assets	5900	4700
Property, Plant and Equipment	10,000	11,200
Total Assets	15,900	15,900
Current Liabilities
Accounts Payable	3,000	3,200
Current portion of LT debt	200	400
Total Current Liabilities	3200	3600
Notes payable	2,000	7,000
Total Liabilities	5200	10,600
Common Stock	6,000	2,000
Additional Paid-in Capital	1,000	1,000
Retained Earnings	3,700	2,300
Total Stockholders Equity	10,700	5300
Total Liab & SE	15,900	15,900

(a) [6 points] What are the current ratios for both Redmond Corporation and Wishart Company? Which company appears to be more solvent when looking at the current ratio?

(b) [6 points] What is the total debt ratio for each company? Which company appears to have higher default risk when looking at the debt ratio?

(c) [8 points] In order to investigate how efficiently the firms manage their inventories, we want to check how many days it takes for the firms to sell out their inventories. Choose an appropriate measure and determine which firm is managing its inventory more efficiently when looking at the ratio. Costs of goods sold for both firms are $20,000.