III. Financial Ratios (16 pts) The Gap, Inc. (GAP) is one of Lululemon's competitors. Compute Lululemon's financial ratios and compare them to those of GAP. Use the ratio definitions as discussed in class. "2019" refers to fiscal year 2019. 1. The following table presents the current ratio and the quality of earnings ratio of GAP at the end of 2019. Fill in the table by computing the ratios of Lululemon at the end of 2019. Round your answers to two decimal places. (8 pts) GAP LULULEMON Current Ratio 1.96 Which of the two companies, GAP or LULULEMON, appears safer in terms of being able to meet its short-term obligations? (Circle either GAP or LULULEMON.) GAP LULULEMON 2. The following table gives the decomposition of GAP's 2019 return-on-assets (ROA). Complete the table by filling in the decomposition of Lululemon's ROA. Round your answers to two decimal places. (8 pts) Profit margin Net Income Revenues Asset Turnover ROA Revenues Assets Net Income Assets 12.47% GAP 6.05% 2.06 LULULEMON Which of the two companies, GAP or LULULEMON, has better operating performance, as measured by Asset Turnover? (Circle either GAP or LULULEMON.) GAP 6 LULULEMON