can you please help me with this finance assignment. it is due within 3 hrs.

MGMT 4650 Financial/Ratio Analysis Practice Test Name____________________________________ Write down or mark your answers clearly. Justify your answers by providing supporting information (for instance, calculated ratios) if the question requires it. Make sure that you have filled in all the identification information asked for above. Note: there are a total of 10 questions to answer, each worth 10 points. GOOD LUCK! The information below is excerpted from the financial statements of two companies. Use this information to answer the questions 1-5. (in $ million) Net revenues Net income Total current assets Total assets Total current liabilities Total liabilities Total stockholders' equity Company A 117958 3526 18672.5 42494 12708.5 24671 17823 Company B 41296 1188 29564.5 37433 15370 32030 5403.5 1. Which company is more efficient (i.e., utilizes its assets better)? Justify using appropriate ratio(s). 2. Which company is less liquid (i.e., more risky in the short-term)? Justify using appropriate ratio(s). 3. Which company is more leveraged? Justify using appropriate ratio(s). 4. Is one company significantly more profitable than the other? Justify using appropriate ratio(s). 5. Which company creates higher value for its shareholders? Explain using appropriate ratio(s). (Stockholder equity can be used as a proxy for shareholders) 6. Explain the difference between accounting (financial statements) and market value (stock price) measures of performance? 7. What are the steps to analyze financial statements strategically? 8. How can you control for size when comparing the financials of the 2 firms from the same industry? 9. Why is it important to analyze the special charges more thoroughly? 10. What's a potential problem with using rule of thumb in interpreting financial ratios