Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.) Assets Cash Accounts receivable (net) Short-term investments Balance Sheets Inventory Prepaid expenses and other current assets. Current assets Property, plant, and equipment (net) Metropolitan Republic $ 181.3 $ 41.1 425.7 329.0 6.6 467.4 637.2 137.6 480.7 $ 1,212.0 $1,494.6 2,610.2 213.3 2,086.8 Intangibles and other assets 469.7 Total assets $ 4,035.5 $4,051.1 Liabilities and Shareholders' Equity Accounts payable $ Short-term notes Accruals and other current liabilities Current liabilities Long-term debt Deferred tax liability Other long-term liabilities Total liabilities Common stock (par and additional paid-in capital) Retained earnings Less: Treasury stock Total liabilities and shareholders' equity 468.9 232.1 586.2 $ 694.2 562.4 543.5 $ 1,287.2 $ 1,800.1 537.6 546.3 388.6 615.7 109.0 97.1 $ 2,322.4 $3,059.2 Income Statements Net sales Cost of goods sold s Gross profit Operating expenses. Interest expense Income before taxes Income tax expense Net income Net income per share 146.9 2,480.9 (914.7) $4,035.5 $ 5,701.0 (2,905.0) $2,796.0 (1,740.7) (51.8) 1,604.9 (949.0) $4,051.1 $7,770.2 (4,477.7) $ 3,292.5 (2,534.2) (43.6) 336.0 $1,003.5 $ 714.7 (393.7) (273.1) $ 609.8 $ 441.6 $ 2.6 $ 6.6 Evaluate and compare the two companies by responding to the following questions. Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios below. 2. Evaluate and compare the two companies.