You are asked to make a decision to invest in one of two established supermarkets. latest financial statements include the following details: Balance Sheet at December 31, 2018 Their Shoppers Fair Master Mac $'000 $'000 ASSETS Property, plant & equipment Inventories Accounts Receivable Other Assets Cash 20,000 3,000 3,000 2,500 2,000 29,500 12,000 1,000 1,500 1,250 1,250 17,000 LIABILITIES Loan Payable in 2018) Loan Payable (by Dec 2020) Accounts Payable NET ASSETS EQUITY Issued Share Capital Retained Earnings 11,000 1,250 1.750 14,000 15,500 15,000 4,000 3.000 22.000 12,000 5,000 10.500 15,500 4,000 8,000 12.000 Income Statement for the year ended December 31, 2018 Shoppers Fair $'000 Master Mac $'000 Sales Cost of Goods Sold Gross profit Administrative expenses Distribution costs Operating Income Interest expenses 35,500 15,500 20,000 (3,000) (1,000) 16,000 (1,250) 14,750 (5,500) 14,200 43,500 30,000 13,500 (2,500) (1,500) 9,500 (1,500) 8,000 (1,000) 7,000 Taxation Net Income Required: a) Perform an in-depth ratio analysis of the 2 companies. Use the following ratios as a guide: - Current ratio (Current Assets/Current Liabilities) - Quick ratio (Current Assets - Inventory / imment liabilities - Inventory/Current Liabilities) - Inventory turnover (Cost of Goods Sold/Av. Inventory) - Profit Margin (Net Income/Sales) - Asset Turnover (Sales/Av Total Assets) - Return on Equity (Net Income/Av. Stockholders' Equity) - Debt to Equity Ratio (Total Liabilities/Total Stockholders' Equity) - Interest Cover (Income before interest and taxes/Int. expense)