Given the financial success of NSP, they decide to branch out into apparel and decide to acquire another company. They identify two options, H&N and Zarah, Billie and Taylor set the criteria that the company they choose is undervalued and has the ability to change higher prices to customers. Consider the following financial statement information for both companies. Zarah $388 000 $50 000 300 000 220 000 170 000 Company Name H&N Financial Statement Data Sales $380 000 Net Profit $50 000 Average Shares Outstanding 300 000 Average Total Assets 205 000 Average Total Equity 176 000 Market Data Share Price Financial Statement Analysis Ratios Current Ratio 1.5 Receivables Turnover Ratio 7 Inventory Turnover Ratio 3.4 Debt to Assets 0.85 Times Interest Earned 2 Required: 0.9 7.5 6.8 0.55 4.8 A) Using the criteria above, which company would you recommend investing in? Explain your recommendation with reference to the ratios above and by calculating any other relevant ratios (3 marks) B) Explain whether each company can repay their short term and long-term debt based on the ratios provided (2 marks) C) H&N have recently committed to more sustainable practices by carefully storing and disposing of harmful chemicals instead of prior practices of illegally dumping chemicals. Discuss several financial implications of their move (both good and bad), referring to environmental costs and how profitability ratios may change in the long term