Calculate and interpret the following ratios and measures. 1. Measuring ability to pay current liabilities ( Liquidity analysis): Calculate the current ratio and the quick ratio for both companies for the latest year presented. How easily can the companies meet their current obligations? Which company is more liquid? Measuring turnover and cash conversion cycle: Evaluate the ability to sell inventory, collect receivables, and manage payments. Which company appears to be the most efcient with managing its cash conversion cycle? (Note:You will need to use some balance sheet balances from three years, even though the balance sheet only includes two years of balances. To find one year earlier than the two years presented on the balance sheet, nd the Form 10-K for the earlier year.) Measuring leverage (overall ability to pay debts]: Calculate the debt ratio and the times-interest-earned ratio for the latest year presented. How easily can the company meet its long-term obligations? Measuring protability: Calculate or list the following ratios for the latest year presented: Gross margin ratio, and Earnings per share. How profitable are the companies? Calculate Return on Assets for the two most recent years. What is the trend? (Note:You will need to use some balance sheet balances from three years, even though the balance sheet only includes two years of balances. To find one year earlier than the two years presented on the balance sheet, find the Form 10-K for the earlier year.) Analyzing stock as an investment: Calculate the following ratios for the latest year presented: Price- earnings ratio and dividend yield ratio. How does the stock market View the company's future earnings potential