Holister Electric was able to find financial statements of another company, Stark Supplies Inc., that operates in the same industry. The comparative income statement and balance sheet of this company is shown below.
									Stark Supplies Inc.
Income Statement
For the Year Ended December 31
			2021	2020
Sales Revenue			$896,000	$960,000
Less Cost of Goods Sold			358,400	$384,000
Gross Profit			537,600	576,000
Operating Expenses
Operating Expenses			$345,000	$472,000
Interest Expense			$125,000	$74,000
Depreciation Expense			22,400	$18,600
Total Operating Expenses			492,400	564,600
Income from Operations			45,200	11,400
Income Tax Expense			12,204	3,078
Net Income			32,996	8,322
Stark Supplies Inc.
Comparative Balance Sheet
As at December 31
			2021	2020
Assets
Current Assets
Cash			$285,000	$298,000
Accounts Receivable			187,500	119,100
Prepaid Insurance			50,000	60,000
Inventory			90,000	80,000
Total Current Assets			$612,500	$557,100
Non-Current Assets
Property, Plant & Equipment			475,000	475,000
Accumulated Depreciation			(234,400)	-212,000
Total Non-Current Assets			240,600	263,000
Total Assets			$853,100	$820,100
Liabilities
Current Liabilities
Accounts Payable			91,200	86,300
Unearned Revenue			26,100	24,310
Total Current Liabilities			$117,300	$110,610
Non-Current Liabilities
Bank Loan			82,000	78,000
Total Non-Current Liabilities			82,000	78,000
Total Liabilities			199,300	188,610
Shareholders' Equity
Common Shares			165,000	149,000
Retained Earnings			488,800	482,490
Total Shareholders' Equity			653,800	631,490
Liabilities & Shareholders' Equity			$853,100	$820,100
Using the income statement and balance sheet from Holister Electric and Stark Supplies, calculate the appropriate ratios to determine which company is doing better in the categories listed below. Round all ratios to 2 decimal places. Write your explanations in the textbox.

c) management performance (DSO, A/R turnover, inventory days on hand, inventory turnover)								9 Marks	0
d) Analyze and compare the performance of the two companies using at least two ratios from each category. (The analysis is not expected to exceed 250 words).									1 Mark	0