The following summaries from the income statements and balance sheets of Western Tech Company and Lativa, Incorporated are presented below. (1) For both companies for Year 2, compute the: (a) Current ratio (b) Acid-test ratio (c) Accounts receivable turnover (d) Inventory turnover (e) Days' sales in inventory (f) Days' sales uncollected Which company do you consider to be the better short-term credit risk? Explain. (2) For both companies for Year 2, compute the: (a) Profit margin ratio (b) Return on total assets (c) Return on equity Which company do you consider to have better profitability ratios? (Make sure you show your calculations for each ratio) Western Tech Company Consolidated Balance Sheets (in millions) December 31, December 31, Year 2 Year 1 Assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Property, plant, and equipment, net Other long term assets Total assets Liabilities Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities $ 634.0 2,101.1 1,514.9 429.9 4,679.9 1,620.8 413.2 $ 6,713.9 $ 205.7 75.4 572.7 1,054.2 107.2 2.015.2 $ 575.5 1,804.1 1,373.8 401.3 4,154.7 1,614.5 670.8 $ 6,440.0 $ 55.3 425.2 504.4 765.3 83.0 1.833.2