Note: Please answer by solving the two attached questions

b.Compare the performance of the two companies based on the results of ratios calculated in part Answer 1 of 1 M te to. Se GE -0. MR. DA 45 BOB = 1.86:1 2 29% The Below values were taken from Balance sheet provided in the question. Total Current Assets = 39,300 Total Current Liabilities =21,100 Total Assets =126,000 Total Liabilities = 37,000 Total shareholder equity=89,000 Inventory = 3,000 Current Ratio = Total Current Assets 39,300 1.86256 Total Current Liabilities 21,100 -> Current Ratio explains the company's ability to pay short-term obligations or those due within one year. -> Ideal Current Ratio - Between 1.2 to 2 for any in industry Debt Ratio = Total Liabilities 37,000 0.29365 Total Assets 126,000 -> Debt Ratio helps to determine the overall risk of a company. In case of more liabilities, the risk will be more & Vice Versa -> Ideal Debt Ratio - 30% - 60% for any industry Quick Ratio Total Current Assets - Inventory 39,300 - 3,000 - 1.72038 Total Current Liabilities 21.100 -> Quick Ratio measures a company's ability to meet its short-term obligations with its most liquid assets. -> Ideal Quick Ratio is 1:1 for any industry Equity Multiplier = Total Current Assets 39,300 Total shareholder equity 89,000 -0.44157 -> Equity Multiplier measures the portion of the company's assets to shareholders funds -> Ideal Equity Multiplier Is S for most of the Industries Total Liabilities 37,000 Debt to equity ratio = 0.41573 Total shareholder equity -> Using Debt to equity ratio, we would be able to evaluate how much leverage a company is using, -> Ideal Debt-Equity ratio is 1 to 1.5 for any industry - 1.72:1 0.44:1 0.42:1 89,000