Below is comparative information on two companies in the same industry: For the Year Ended Kat Company Nat Company December 31" 2018 Sales (all on account) $4,550,100 $7,450,000 Cost of Goods Sold 3,115,000 5,270,000 Operating Expenses 780,000 1.060,000 Interest Expenses 105,000 280,0 00 Income tax. Expense 140.000 160 000 Net Income 5410.000 5480 000 Kat Company Nat Company As at December 31" 2018 2017 2018 2017 Cash $190,000 $150,000 $210,000 $190,000 Accounts Receivable 460,000 380,000 770,000 510,000 Inventory 550,000 490,000 660,000 620,000 Equipment (net) 4.010.010 3.570.000 6.930.000 6,580,000 Total Assets $5 210 000 $4.520 000 S8 570 0 10 $7.200 0.0 0 Current Liabilities $780,000 $610,000 $910,000 $820,000 Long Term Liabilities 2,150,010 1,990,000 4,650,000 4,380,000 Common Stock 140,000 140,000 190,000 190,000 Retained Earnings 2.140.000 1,850 000 2.820.000 2.510,000 Total Liabilities and Equity 35.210 000 $4,590 00 0 $7 900 000 Common Shares 103,000 ordinary shares 235,000 ordinary shares outstanding: outstanding for the year. outstanding for the year. Share price on December $85 00 31" 2018: Required: A (4 marks) Explain the difference between the Retained Earnings balance from 2017 to 2018 for both companies. B. (4 marks) What percentage of carnings were paid out as dividends in fiscal 2018 for each company? C. (6 marks) Calculate and explain each company's long-term solvency (risk) for 2018 and 2017. D. (4 marks) Calculate and explain each company's success in its use of its assets. E. (4 marks) Calculate and explain each company's management of inventory. F. (4 marks) Using the above ratios, explain which company is a better one to invest in and why. Using the ratios you derived, justify and explain your recommendation