Question 3 (25 marks) As loan analyst for MD Bank, you have been presented the following information relating to the year ended December 31, 2021: PL Company HR Company Assets Cash $120,000 $320,000 Accounts receivables 220,000 302,000 Inventory 570,000 518,000 Total current assets $910,000 $1,140,000 Non-current assets 500.000 612,000 Total assets $1.410,000 $1.752,000 Liabilities and Equity Current liabilities $300,000 $350,000 Non-current liabilities 400,000 500,000 Capital, at Dec 31, 2021 710,000 902.000 Total liabilities and equity $1.410.000 $1,752.000 Annual sales $930,000 $1,500,000 Gross profit as a percentage of sales 30% 40% Each of these two companies has requested a loan of $50,000 for 6 months with no collateral offered. Inasmuch as your bank has reached its quota for loans of this type, only one of these requests is to be granted. Required: Assume that the ending account balances on December 31, 2021, are representative of the average for the entire year. Which of the two companies, as judged by the information given above, would you recommend as the better choice and why? Calculate the following 4 ratios to support your answer: current ratio, quick ratio, accounts receivable turnover and inventory turnover