Following are data from the statements of two companies (Salama Insurance Co. And Wataniya Insurance Co.) Providing similar products: Salama Insurance Co $61,750 39,900 Wataniya Insurance Co. $362,000 27,680 12,950 69,785 548 1,745 -68 -362 1,198 6,623 $3,245 $13,580 $20,245 $48,750 26,200 Income Statement Data for 2020 Net Sales Cost of Goods Sold Selling and administrative expense Interest expense Other Income (Expense) Income Tax Expense Net Income Balance Sheets Data (End of 2020) Current Assets NonCurrent Assets Total Assets Current Liabilities Long-term Debt Total stockholders' Equity Total Liabilities and stockholders' Equity Beginning-of-2020 Balances Total Assets Total stockholders' Equity Current Liabilities Total Liabilities Other Data Average Net Accounts Receivable 124,750 $159,750 $41,850 $11,245 $50,450 17,400 40,780 15,450 71.450 $41.500 $169,750 $43,850 $161,250 13,240 62,480 10,300 52,640 28,750 94,500 $8,100 $4,120 8,020 32,500 4,900 25,900 Average Inventory Net Cash Provided by Operating Activities Capital Expenditures Dividends 1,452 10,750 495 3,850 Required: Compare the Solvency, Liquidity and Profitability position of the two companies by Calculating current ratio, Account Receivable Turnover, Average Collection Period (in Days) (365 days Account Receivable Turnover), Inventory Turnover, Days in Inventory, Current Cash Debt Coverage (net cash provided by operating activities / average current liability). Profit Margin, Asset Tumover, Retum on Assets, Return on Common Stockholder's Equity, Debt to Assets, Times Interest Earned, 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 each 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) (I 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