Two companies are in direct competition in the sports apparel industry, Lopez International and Rodriguez Corporation. The ratios as computed for each company's most recent fiscal year are below. Use this information to answer the questions that follow. Lopez International Rodriguez Corporation Times Interest Earned Average Collection Period (in days) Free Cash Flow (in millions) Debt to Assets Ratio Return on Assets Profit Margin Current Ratio Return on Equity Inventory Turnover 6.4 42.1 8600 66 8.6 4.8 1.63 21.3 6.6 11.2 30.6 9800 58 5.6 3.5 0.87 17.6 9.1 1) a) If you were concerned about the company's solvency, which two ratios from above would you focus on? b) What does a solvency ratio tell you about a company? c) Which company's solvency is better? 2) a) The current ratio is used to evaluate a company's (liquidity, solvency, profitability)? b) Which company's current ratio is better? 3) a) Which company has stronger profitabilty? b) How did you make that determination