Question 1 You are currently working in a construction company. The company is having two job offers from two different companies (Company ABC and Company XYZ). The current resources of your company can only carry out one project. To ensure that the project run smoothly without any liquidity problem, you have been instructed to study the current financial situation of the offering companies. The end of year balance sheet of the companies is as follows. Balance Sheet for ABC and XYZ Assets ABC XYZ Fixed Assets 230,000 275,000 Account Receivables 150,000 120,000 Inventory 50,000 50,000 Cash 70,000 100,000 Other Assets 75,000 40,000 TOTAL 575,000 585,000 Liabilities Capital 230,000 275,000 Long Term Debt 80,000 120,000 Account Payables 165,000 110,000 Other Current Liabilities 100,000 80,000 TOTAL 575,000 585,000 Upon further investigation, you have found that the amount of account payables for Companies ABC and XYZ at the start of the year is RM20,000 and RM30,000, respectively. You have also found that the amount of credit purchase in the year for both Companies ABC and XYZ is RM300,000 and RM270,000 respectively. Based on all this information, recommend on which company that give lower risk to your company. The recommendation must be justified by the following analysis: a) Liquidity analysis. b) Solvency analysis. c) Any other financial analysis that you think can help in making your decision