You are employed as an investment analyst by an investment fund. You specialise in the analysis of the fast food industry. The following data apply to 4 firms in the fast food industry. Firm Sales Current assets Total assets Current liabilities Long-term debt Interest charges Profit before taxes (Thousands of Dollars) A B D $10 $15 $8 $12 4 7 3 6 9 17 10 12 2 3 3 4 2 5 1 7 0.2 0.6 0.12 0.65 1.8 2.0 1.50 2.50 You have also collected the following average financial ratios of the fast food industry: Current ratio Debt ratio Times interest earned Fixed assets turnover Profit margin Return on total assets 1.65 62% 7.00 1.58 10% 9% Required: a. Calculate the ratios that would be useful in determining the financial strength of each firm. Assume the tax rate for each firm is 40%. (15 marks) b. Compare each firm to the industry average and comment on particular strengths and weaknesses of each firm. (15 marks)