Below is selected financial information from the financial statements of company A and company B.Both company A and company B started their business on 1/1/2019.

Company A Company B

current assets on 12/31/2019 100 8,000

total assets on 12/31/2019 11,000 28,000

current liability on 12/31/2019 200 4,000

total liability on 12/31/2019 4,000 18,000

sales revenue on 12/31/2019 4,500 20,000

Cost of goods sold for year 2019 1,000 16,000

interest expense for year 2019 400 1,000

net income for year 2019 1,500 2,500

a) Which company provides better return on assets?

b) Which company has less liquidity risk in terms of current ratio?

c) Which company has less solvency risk in terms of debt to total assets ratio?