Question: . Problem Solving. (50 points) 1. The following exercise is designed to help students apply their knowledge of financial statement analysis in a real-life business
. Problem Solving. (50 points) 1. The following exercise is designed to help students apply their knowledge of financial statement analysis in a real-life business context. You are an investor debating on whether to invest in either two companies: Kwik-E-Mart or Grocery Plus. Both of these companies run small grocery store chains in the Chicago area. Thankfully, you remember your lesson on financial statement analysis and are confident that you will be able to better compare these companies by applying these methods. You obtain the following financial information on each of these companies. (Data presented in thousands of USD) Required: 1. Compute the current ratio of each company. Comment on how these companies compare in regard to their liquidity. 2. Computed the debt ratio of each company. Comment on these companies compare in regard to their solvency. 3. Compute the operating profit ratio of each company. Comment on how these companies compare in regard to their profitability
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