i Data Table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Item Total assets Total equity (all common) Total debt Annual interest Total sales EBIT Earnings available for common stockholders Pelican Paper, Inc. $10,600,000 9,200,000 1,400,000 140,000 22,000,000 5,500,000 Timberland Forest, Inc. $10,600,000 5,200,000 5,400,000 540,000 22,000,000 5,500,000 3,247200 3,036,000 Print Done P3-20 (similar to) Question Help The relationship between financial leverage and profitability Pelican Paper, Inc and Timberland Forest, Inc., arrivals in the manufacture of craft papers Some financial statement values for each company follow Use them in a ratio analysis that compares the firme financial leverage and profitability a. Calculate the following debt and coverage ratios for the two companies Discuss their financial risk and ability to cover the costs in relation to each other (1) Debt ratio (2) Times Inforest earned ratio b. Calculate the following profitabilty ratios for the two companies. Discuss thele profitability relative to each other (1) Operating profit margin (2) Net profit margin (3) Return on total assets (4) Return on common equity c. In what way has the larger debt of Timberland Forest made it more profitable than Pelican Paper? What are the risks that Timberland's investors undertake when they choose to purchase its stock instead of Polician's a. The debt ratio for Pelican is % (Round to one decimal place)