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Bonus question: Below is selected financial information from the financial statements of company A and company B. both company A and company B started their

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Bonus question: 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 1/1/2017. Company B $8,000 Company A $100 10,000 11,000 200 4,000 4,500 1,000 400 current assets on 12/31/2017 fixed assets on 12/31/2017 total assets on 12/31/2017 20,000 28,000 4,000 18,000 20,000 16,000 1,000 2,500 current liability on 12/31/2017 total liability on 12/31/2017 sales revenue on 12/31/2017 Cost of goods sold for year 2017 interest expense for year 2017 net income for year 2017 1,500 a) Which company provides better return on assets? (return on assets- net income/average total assets) b) Which company has less liquidity risk in terms of current ratio? current assets/current liabilities) (current ratio c) Which company has less solvency risk in terms of debt to equity ratio? (debt to equity total liabilities/total assets)

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