Given the following accounts with amounts, build the balance sheet, income statement and calculate current ratio, debt ratio, inventory turnover and gross profit margin for both companies. Which company is riskier? Why? (Explain) COMPANY: "HABEMUS" Cash for wages 56,987 Income tax payable 5,987 Buildings 1,784,455 Retained earnings 126,883 Materials 89,596 Bonuses payable (2 years) 46,987 Certificate of Deposit for 4 months 7,897 Cost of goods sold 456,897 Wages 5,230,244 Documents receivable (3 years) 7,998 Long-term investment 45,987 Land 245,087 Common stock 875,995 Automobiles Cash in banks 245,987 20,976 Checking accounts 145,987 Accounts payable 45,988 Accounts receivable 23,000 Accrued depreciation furniture 16,799 Work in process products 34,987 Mortgage payable (3 years) 23,985 Capital 2,000,000 Interest payable 4,987 Sales 5,894,897 Wages payable 2007 Mortgage payable (3 years) 23,985 Capital 2,000,000 Interest payable 4,987 Sales 5,894,897 Wages payable 2,987 Long-term payables 34,997 Petty cash 3,987 Equipment and machinery 345,987 Finished products 45,678 Taxes 34,897 Material expenses 45,976 Documents payable (1.5 years) 56,986 Furniture 167,985 COMPANY: "PAPAM" Common stock Prepaid advertising Sales Rent 645,467 34,907 6,983,044 854 345 Prepaid advertising Sales Rent 34,907 6,983,044 Cost of goods sold Documents receivable (1.5 years) Computers Incurred losses Suppliers short term 854,345 5,875,735 56,896 14,987 5,986 65,896 Purchases 246,978 Capital 3,000,000 Cash 41,245 Interest receivable 1,068,863 Office supplies 1,897 Inventory Machinery 100,000 2,386,582 FORMULAS Current Ratio = Current assets Current liabilities Inventory Turnover = Cost of Goods Sold . Average inventory Debt Ratio = Total Liabilities. Total Assets Gross Profit Margin = Gross Profit (Sales COGS). Sales