Andrew Peller Limited and Magnotta Winery Corporation are two producers of quality wines in Canada. Selected financial data (in thousands) for these two competitors for a recent year are as follows:

Instructions
1. For each company, determine the following measures, rounding to one decimal place. Industry averages are provided in parentheses after each ratio.
a. Current ratio (2.4:1)
b. Accounts receivable turnover (11.3 times)
c. Inventory turnover (3.2 times)
d. Total asset turnover (0.6 times) e. debt ratio (63%)
f. Times interest earned ratio (3.8 times)
g. Profit margin (2.8%) h. return on assets (1.7%)
i. Return on shareholders' equity (4.6%)
2. Compare the liquidity, efficiency, solvency, and profitability of the two companies to each other and to the industry.
3. Which company would be more appealing to an investor? Explain your decision.

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Andrew Peller Magnotta Winery Statement of Earnings Sales $ 23,224 $276,883 Cost of sales 174,452 14,156 9,068 Gross profit Operating and other expenses 102,431 78.538 5,211 Interest expense 419 5.354 Income before income taxes 18.539 3,438 Income taxes 5,538 1,116 $ 13.001 Net income 2$ 2,322 Balance Sheet Current assets $ 24,937 Accounts receivable 617 Inventories 110.256 30.810 Other current assets 2.219 836 Total current assets 137,412 32,263 Property, plant, and equipment 84,490 20,085 Other assets 63,650 252 $ 285,552 $ 52.600 Total assets $ 8,116 Current liabilities $102,543 62,457 Long-term liabilities Shareholders' equity 5,415 39.069 120,552 $ 285,552 $ 52,600 Total liabilities and shareholders' equity Additional Information $ 24,164 Average accounts receivable Average inventories Average total assets Average total shareholders' equity 604 102,474 30.344 276,774 52,139 117,425 37,849