Refer to the selected ratios for two companies below and answer the following: Required: 1. Which company is more liquid? Explain. (3 marks) 2. Which company is more profitable? Explain. (3 marks) 3. Which company is more solvent? Explain. (3 marks) 4. Which company do investors favour? Explain. (3 marks) Ratio Asset Turnover Current Ratio Debt to Total Assets Earnings Per Share Gross Profit Margin Interest Coverage Inventory Turnover Price-Earnings Profit margin Receivables Turnover Return on Assets Return on Shareholder's Equity ALPHA CORP. BETA CORP INDUSTRY 1.0 times 1.0 times 0.9 times 1.1: 1.0 0.6: 1.0 0.8: 1.0 72% 56% 62% $0.98 $1.37 $1.08 60.00% 73.80% 57.70% 7.9 times 15.3 times 53.3 times 9.9 times 5.8 times 8.3 times 24.3 times 50.3 times 32.2 times 11.20% 12.30% 8.10% 11.4 times | 9.8 times 9.3 times 9.30% 11.20% 7.2096 39.80% 25.70% 26,40%