Compare Google and Baidu, a Chinese search engine, using a thorough financial ratios analysis.Part A: For each company, compute all the ratios listed in Figure 13.7 for the current year (or the most recent financial statements available) (i.e., debt management, liquidity, asset management, market trend, and profitability).Part B: Compare and contrast these companies using the ratios you calculated from part A.Part C: Carefully read and summarize the ?Risk Management? or ?hedging? practices described in the financial statements for each company.Parts D: If you were a mutual fund manager and could invest in only one of these companies, which one would you select and why? Be sure to justify your answer using your results from parts A, B, and C.I would recommend using the companies? websites to acquire the financial statements. This assignment should be typed, single spaced, with between two and five pages of discussion (not counting any tables or calculations). Include a table that summarizes all comparative ratio calculations.

Figure 13.7

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Working Capital • Definition: • WC = Current Assets (CA) – Current Liabilities (CL) • Changes in Working Capital • AWC = ACA - ACL • If AWC > 0, working capital requirement (Use of Funds) • If AWC < 0, working capital release (Source of Funds) Current Working Capital Current Asset Liabilities Changes in Current Changes in Working Capital Changes in Current Assets Liabilities Account receivables Account payables Inventories Short-term debt Other current assets Other current liabilities