The financial information for Trump and Biden Companies are as follows:

Trump Biden

Balance Sheet

Cash $ $35,000$ $ $32,000$

Accounts Receivable, net $77,00028,000$

Inventory $154,00030,000$

Equipment, net $770,000192,000$

Other Assets $196,00068,400$

Total Assets $$1,232,000$ $$350,400$

Current Liabilities $ $168,000$ $ $18,000$

Note Payable long term $266,00066,000$

Common Stock, $($par $$20$ share$)672,000252,000$

Additional Paid In Capital $70,0004,800$

Retained Earnings $56,0009,600$

Total Liabilities and S$/$E $$1,232,000$ $$350,400$

Income Statement

Sales Revenue $$1,120,000$ $$336,000$

Cost of Goods sold $672,000180,000$

Other Expenses $386,000114,000$

Net Income $ $112,000$ $ $42,000$

Other Data

Per Share Price at end of year $$15\mathrm{.}00$ $$18\mathrm{.}50$

Selected Data from Prior Year

Accounts Receivable, net $ $65,800$ $ $27,200$

Inventory $133,00045,600$

Equipment, net $770,000192,000$

Notes Payable, long term $266,00066,000$

Total Stockholders Equity $798,000266,400$

These two companies are in the same industry but in different cities. Each company has been in business over $10$ years. Neither company has issued stock in the current year. Assume all sales are credit sales.

Required SHOW YOUR WORK!

$1.$ For each company calculate the following ratios;

a$.$ Current Ratio e$.$ Debt to Assets Ratio

b$.$ Earnings per Share f$.$ Gross Profit Percentage

c$.$ Inventory Turnover g$.$ Price Earnings Ratio

d$.$ Days to Sell h$.$ Return on Equity

$2.$ Which company is better for:

a$.$ Profitability? Why?

c$..$Liquidity? Why?

c$.$ Solvancy? Why?