Required: Compare the Solvency Liquidity and Profitability position of the two companies by Calculating current ratio, Account Receivable Tumover. Average Collection Period (in Days) (365 days Account Receivable Tumover), Inventory Tumover. Days in Inventory. Current Cash Debt Coverage (net cash provided by operating activities / average current liability). Protit Margin. Asset Tumover, Return on Assets, Retum on Common Stockholder's Equity, Debt to Assets. Times Interest Earned, Cash Debt Coverage (net cash provided by operating activities / average total liability) and free Cash Flow (net cash provided by operating activities - Capital expenditures - cash dividends). Then state which company you think is better in short-term and why (Interpretation) and under the assumption that each company's stock can be purchased at book value, state which company's stock you think is better to invest and why (Interpretation) Instructions: - Small Introduction about two Companies (Half to One Page) (I Mark) - Need Sources 2. Body - Ratio Analysis (8 Marks) 2.1 Include formular 2.2 Calculate Ratios in Details 2.3 Fill the table with ratios (Answers of Ratios in Order) and Interpretation Ratio Analysis Formula Al Othaim Farm Interpretation Markets Co Superstores 3. Compare the Solvency, Liquidity and Profitability for the two companies (Hall Page) ( Marks) 4. Small Conclusion (Half Page) (1 mark) Following are data from the statements of two companies (Al Othaim Markets Co and Farm Superstores) selling similar products Al Othm Markets Superstores $380,000 72.920 1.862 1.289 $13.955 $19.363 25.600 $43.982 Income Statement Data for 2020 Net Sales Cost of Goods Sold Selling and administrative expense Interest expense Other Income (Expense) Income Tax Experts Net Income Balance Sheets Data (End of 2020) Current Assets NonCurrent Assets Total Assets Current Liabilities Long-term Debt Total stockholders' Equity Total Liabilities and stockholders' Equity Beginning-of-2020 Balances Total Assets Total stockholders' Equity Current Liabilities Total Liabilitics Other Data Average Net Accounts Receivable Average Inventory 549,76 125.201 5162.500 552652 S1090 14,950 $42.500 72.101 5171230 $45.210 S165.300 12.930 11.300 56.331 S7520 5392 7020 34012 5169 27.842 11,953 1.635 Net Cash Provided by Operating Activities Capital Expenditures Dividends 503 4.125