Task 4. Summarized are the key ratios and financial snapshots of three different companies: Company A Company B Company C Total Net Profit (current year) $1,000,000 $1,000,000 $1,000,000 Cash Balance (current year) $200,000 $100,000 $20,000 Current ratio 2 times 3 times 4 times Gross profit ratio 35 % 20% 18 % Net profit ratio (based on PAT) 20% 8 % 4% Return on equity 10 % 10 % 10% Receivable days 60 days 40 days 90 days Inventory days 50 days 65 days 120 days Payable days 100 days 60 days 30 days Z score 4.75 (B+) 4.95 (BB-)5.25 (BB) Gray Zone Gray Zone Gray Zone NOTE: All the three companies are in same industry and have same set of variables exposed to them. i. From the above information, comment on the financial health of the stated companies. (10 marks) ii. Highlight the positive factors and red flags for each of the stated companies. (5 marks) iii. As an investor in the equity market, choose one company for your investment plans. Give proper justification