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You have just been hired by the Bank of Nova Scotia & your manager, Ms. DeVille has come to you with a task. She

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You have just been hired by the Bank of Nova Scotia & your manager, Ms. DeVille has come to you with a task. She has 2 customers asking for a 5 year $50,000 loan and she does not know which customer to give the loan to. Ms. Deville has completed the ratio analysis on the first company, Ursula's Wishes Limited but has not had a chance to complete the ratio analysis of the second company, Gaston's Tavern Limited. Ms. Deville is requesting that you prepare the ratio analysis on Gaston's & then provide a recommendation on which company you would lend the money to. She has provided you with the comparative balance sheet & income statement for the year ended May 31, 2022 as well as the ratio analysis of Ursula's Wishes Limited for the year ended May 31, 2022 and selected industry averages. REQUIRED: 1. Calculate 12 ratios, from the ones we covered, to help you analyze Gaston's Tavern Limited. (You can pick which ratios) 2. Based on your answers from Part 1 prepare a memo to Ms. Deville outlining your recommendation as to which company the bank should lend the money to. Make sure to include analysis of 4 of the ratios prepared in Part 1 to support your answer. Ursula's Wishes Limited Industry averages-2021 2022 Ratios Gross profit margin ratio Net profit margin ratio Rate of return on assets 55.00% 56% 4.50% 4.95% 20.00% 25.00% Current ratio. 1.75 1.50 Quick ratios 1.10 1.00 Debt ratio 60.00% 61% Times Interest Earned 25.00 22.00 Earnings per Share S 10.00 $ 8.00 Dividend Yield 14:1 15:1

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