Question 8: According to the financial statements for both companies for the year 2021 that published on their official websites, the following financial statement analysis performed by using the appropriate ratios: Ratio Formula Calculation (BMW) Calculation (Volkswagen) Current ratio Current assets /current liabilities 1.12 1.21 Quick ratio (Current assets closing stock prepaid expenses) / current liabilities 0.92 0.95 Inventory turnover ratio Cost of goods sold / average inventory 5.79 4.63 Non-current assets turnover Sales / net non-current assets 0.78 0.76 Debt ratio (Current liability + non-current liability)/(non-current assets + current assets) 67.3% 72.4% Debt to equity ratio Total debt / total equity 2.06 2.61 Net profit margin (Net income available to common shareholders/net sales) 100% 10% 5% Return on assets (Net income available to common shareholders / Total assets) 100% 4.87% 2.35% Required: Based on the above mentioned ratios for two companies, answer the following questions: Is your chosen Company liquid compared to its peers? Does your chosen Company manage its assets effectively compared to its peers? Does your chosen Companys debt load suggest trouble paying its creditors? Compare your chosen Companys profitability to its peers