Part I: ABC Retail Company Ratios Ratios Industry Average ABC Retail Company Profitability Return on Sales (ROS) Return on Assets (ROA) Return on Equity (ROE) Gross Profit Margin (GP%) Earnings per share (EPS) Quality of Income 6.50% 9.90% 20.90% 39.90% Xxxxxxxxxx NA 5.70% 11 20% 30 20% 36 30% 1.57 1.64 Liquidity Current Ratio Cash Flow Liquidity 2.00 1 33 52 000 6300 27 79 Solvency Debt Ratio Financial leverage LEV Time interest Eamed Free cash flow (in millions Cash Flow Adequacy Efficiency Asset Turnove ATOL Accounts receivable turnover Accounts receivable days Inventory turnover Inventory days 1.96 6.6 days 100 days 1 days 811 days Vnvestment Price earnings ratio (PE) ten Rate 52.00% 2.1 117 XXXXXXXX $ NA 63.00% 2.7 20.8 579 1.74 Debt Ratio Financial leverage (LEV Time Interest Earned Free cash flow (in millions) Cash Flow Adequacy Efficiency Asset Turnover (ATO) Accounts receivable turnover Accounts receivable days Inventory turnover Inventory days 1.53 55 6.6 days 4.5 81. 1 days 1.96 78 15.6 days 5.7 81.1 days 1931 NA $ 14.4 0.40 Investment Price earnings ratio (PE) Dividend Rate Market Value per share Close (select a date and state here 52 week high 52 week low NA 3/1/2020 $25 00 NA $ 25.43 NA S 15.08 NA - Not Available XXXXXX - not comparable among companies ABC Retail Company is a made-up name to replace an actual company. The industry is retail. Answer the following analytical questions, using your own words. This is not a short answer assignment Quality is imperative it will take a couple of paragraphs to sufficiently answer these questions In paragraph format, answer the following questions relating to ABC Retail Company Question 4: Solvency Ratios Part A: What are solvency ratios (discuss on a broader aspect)? What information can solvency ratios tell managers about a specific company, such as ABC Retail Company? Part B: Select 2 ratios under the Solvency Ratio category and state if ABC Retail Company is stronger or weaker than the industry average. State why it is stronger or weaker. (Make sure to be specific to which specific ratio you are discussing. For example: Financial leverage is a Solvency Ratio. ABC Retail Company has a stronger/weaker LEV ratio of 2.7 compared to the industry average of 2.1 because...... continue with paragraphs.)