Following are data from the statements of two companies (Salama Insurance Co. And Wataniya Insurance Co.) Providing similar products Salarm insurance Watania Ca. Insurance Co 561.750 $362.000 39.900 27,680 12.950 69.75 548 1,745 -362 1.198 6.623 $3.245 $13,580 520.245 $48,750 26.200 Income Statement Data for 2020 Net Sales Cost of Good Sold Selling and expense Interest expose Other Income Experie Income Tax Expense Net Income Balance Sheets Data End of 2020) Current Assets NonCorrent Assets Total Current Labdities Long-term Date Total suckholders' Equity Total Liabilities and stockholders Espity Beginning-of-3030 Habanees Total Total stockholders' Equity Curres Liabilities Total Liabilities Other Data Average Net Acts Receivable 124,750 $159,750 $41.450 $11245 $50,450 17.400 40 780 15.450 71.450 $169,750 $41.500 $43,850 $161.250 13.240 2.40 10.300 52.640 94.500 28.70 SR 100 $4,120 8.020 Ave Inventory Net Cash Provided by Operating Activities Capital Expenditures Dividende 4.900 1,452 495 32.500 25,900 10,750 3.850 Required: Compare the Solvency Liquidity and profitability position of the the companies by Calculating Gulatio Account Receivable Tumover, Average Collection Period (In Day 365 days Account Receivable Turnover. Inventory mover, Days in Inventory Curent Cash Debt Coverage root cash provided by operating activities were current liability. Profit Marin Asset Tunne Kemon Asst. Return on Common Stockholder's Equity, Debte Assets Times lateret med Cash Debt Congolah provided by operating activities were Stability and free Cash Flowinct case provided by operating activities - Capital expenditure - dividenda). The state which can you think is better in short and by (Interpectation and under the sumption that each company's sick can be purchased at book Wale which may havens Required: Compare the Solvency, Liquidity and profitability position of the two companies by Calculating current ratio, Account Receivable Tumover. Average Collection Period (In Days) (365 days Account Receivable Tumover), Inventory Turnover, Days in Inventory. Current Cash Debt Coverage (net cash provided by operating activities / average current liability), Profit Margin, Asset Tumover, Return on Assets. Return on Common Stockholder's Equity, Debt to Assets, Times Interest Eamed, Cash Debt Coverage (net cash provided by operating activities / average total liability) and free Cash Flow (net cash provided by operating activities - Capital expenditures - cash dividends). Then state which company you think is better in short-term and why (Interpretation) and under the assumption that cach company's stock can be purchased at book value, state which company's stock you think is better to invest and why (Interpretation) Project's Instructions: 1. Small Introduction about two Companies (Half to One Page) (1 Mark) Need Sources (Note: You can use other sources from online websites) 2. Body - Ratio Analysis (8 Marks) 2.1 Include formulae 2.2 Calculate Ratios in Details 2.3 Fill the table with ratios (Answers of Ratios in Order) and Interpretation Ratio Analysis Formula Salama Wataniya Interpretation Insurance Co. Insurance Co
