Current assets The following information is available from the annual reports of Bearwood Company and Sherlock Company. Bearwood Sherlock Sales 575.000 S125.000 Grass profit 20.500 56,000 Net income 1.950 16.000 64,000 75.000 Ending total assets 80,000 105,000 Current liabilities 40,700 60.500 Total liabilities 60,000 35.000 Average common shares outstanding 600 average shares 4.000 average shares Preferred stock dividends paid 1. For each company, compute the following raties (Enter answers below in the benes for each company): Bearwood Sherlock Current Ratio: Debts to Assets Ratio: Earnings Per Share Ratio: 2. Instructions for Posting (200 to 300 words - 6pts): a. Provide an explanation for each ratio that includes: 1. Your full computation for each ratio that you computed for both companies 2- Why you think each company is doing better or worse for each individual ratio. Make sure to compare each company's ratio results to the other company * Upload and attach your completed excel file to your posting b. Provide a definition for the Current Ratio that includes: 1- The main purpose of the Current Ratio 2. If the Current Ratio is a profitability ratio, liquidity ratio, or solvency ratio 3- How the Current Ratio assists the investor in making a decision to invest in the company, - When the Current Ratio results indicates the company is doing well and when it is doing poorly. 3. Instructions for Reply to another student (100 to 200 words - 40pts): 1. Choose a student to reply to that completed a different part than you did for your posting, * Please remember. A limit of two students allowed to reply to another student's posting b. Review the other student's computations and analysis for all three ratios for both companies to explain 1- If you compute the same or different ratio results for both companies 2. If your analysis is the same or different for each ratio for both companies 3. Explain meaningful details of what you learned from the other student's ratio definition * Alternate to b.3. Or you can explain three various methods for comparing ratio results and why a comparative analysis provides more meaningful information for making decisions about the company