The 2014 financial statements for Rand and Tand companies are summarized below:

These two companies are in the same line of business and in the same province but in different cities. Each company has been in operation for about 10 years. Rand Company is audited by a national accounting firm; Tand Company is audited by a local accounting firm. Both companies received an unqualified opinion (i. e., the independent auditors found nothing wrong) on the financial statements. Rand Company wants to borrow $ 75,000 cash, and Tand Company needs $ 30,000. The loans will be for a two- year period and are needed for working capital purposes.
Required:
1. Complete a schedule that reflects a ratio analysis of each company. Compute the ratios discussed in the chapter.
2. Assume that you work in the loans department of a local bank. You have been asked to analyze the situation and recommend which loan is preferable. Based on the data given, your analysis prepared in (1), and any other information, give your choice and provide a supporting explanation.

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Rand Company Tand Company Statement of Financial Position $25,000 55,000 110,000 550,000 140,000 $880,000 $120,000 190,000 480,000 $45,000 5,000 25,000 160,000 Trade receivables (net) Inventory Property, plant and equipment (net) Other assets Total assets Current liabilities Long-term debt (12%) Share capital Contributed surplus Retained eanings Other comprehensive income Total liabilities and shareholders' equity Statement of Eanings Sales revenue (on credit) Cost of sales Expenses (including interest and income tax) Net earnings Selected Data from the 2013 Statements Trade receivables, net Long-term debt (12%) Inventory Other Data Share price at end of 2014 Income tax rate Dividends declared and paid in 2014 Number of common shares during 2014 $ 292,000 $ 15,000 55,000 210,000 4,000 7,000 1,000 $292,000 38,000 $880,000 (%) $ 800,000 (480,000) 240,000) $80,000 (4) $280,000 (150,000) (95,000 $ 35,000 $ 47,000 190,000 95,000 $11,000 55,000 39,000 $14.00 $ 11.00 20,000 24,000 $ 9,000 10,500