managerial accounting

Using the following information, 1. (16 Marks) Calculate the following ratios for both ABC Inc. and DEF Inc. Show your formulas! a. Current Ratio b. Inventory Turnover c. Days Sales in Receivables 1. Debt to Equity e . Times Interest Earned f. Profit Margin g. Gross Profit Margin h. Return on Equity 2. (8 Marks) For each ratio, which company is performing better or worse and why? 3. (4 Marks) Overall, which company do you think is performing better? Explain ABC Inc DEF Inc Accounts Receivables $27,000 $60,000 Cash $50,000 $130,000 COGS $100,000 $190,000 Current Assets $122,000 $320,000 Current Liabilities $85,000 $190,000 Earnings Before Interest & Taxes $28,000 $80,000 Interest Expense $3,000 $8,000 Inventory $45,000 $130,000 Long Term Debt $60,000 $160,000 Net Income $15,000 $43,200 Revenue $250,000 $550,000 Total Assets $270,000 $550,000 Total Equity $125,000 $200,000 Total Liabilities $145,000 $350,000