You are an investor deciding in which two companys (Arrow and Root) to invest in. I will provide you with a Microsoft Excel file that contains the financial statements for 2 companies (Arrow-S and Root-S) and a tab where you will calculate all ratios (Ratio template for students).

1.In the Microsoft Excel file on the Ratio template for students tab you will be calculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful and comparing the results between the two companies to determine which company has stronger results.

The Final calculated answers for Arrow and Root will be completed in columns F and I. Please ensure that you indicate the units for each ratio calculation. For example, if the unit is days, times, :1, record that in columns G and J beside your calculation. Complete all calculations to 2 decimal places. The calculation portion of the assignment must be completed in Microsoft Excel (preferably using linking of cells or manually calculated. You can also show me how you arrived at your answer in column E for Arrow and column H for Root, in the event your completed answer is not correct to receive partial marks and to help identify where you went wrong to help prepare for final exam.

In column K comment on whether the ratio should be higher or lower to be more successful (Desired result)

In column L, choose which company has a better ratio result based on your calculations. (It may be the same depending on your particular version or may not be applicable.

Arrow-S Root-S Ratio template for students ROOT LTD. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) * Denotes all of these sales were made on credit ROOT LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) ASSETS \begin{tabular}{|l|l|l|} \hline Arrow-S & Root-S & Ratio template for students \\ \hline \end{tabular} Assess and comment on the liquid ty, solvency and profitablility ratios you calculated above. Which company would you invest in and why? Liquidity : Arrow-S Ratio template for students ARROW LTD. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) * Denotes all of these sales were made on credit ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) ASSETS Arrow-S Root-S Ratio template for students ROOT LTD. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) * Denotes all of these sales were made on credit ROOT LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) ASSETS \begin{tabular}{|l|l|l|} \hline Arrow-S & Root-S & Ratio template for students \\ \hline \end{tabular} Assess and comment on the liquid ty, solvency and profitablility ratios you calculated above. Which company would you invest in and why? Liquidity : Arrow-S Ratio template for students ARROW LTD. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) * Denotes all of these sales were made on credit ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) ASSETS