Question P1 (9 Point) Hero and Zero are both in the ice cream business. Hero uses a more concervative cash managment policy Zero ships product to distrubntors upon recieiving the order. Hero ships product upon repcepit of payment For All Questions Below Show all work. Balance Sheet Assets Liabilities and Owners' Equity Hero Zero Hero Zero Current Assets Cash Accounts receivable Inventory 40 20 20 80 60 Current liabilities Accounts payable Notes payable 40 100 Total 160 160 Total 20 100 Long-term debt 220 Long-term Assets Equipement Investments 340 40 40 Total Liabilites 20 320 Total 380 380 Owners' equity Common stock and paid in Surplus Accumulated retained earnings Total 120 400 520 120 100 220 Total Assets 540 540 Total Liabilities and Owners Equity 540 540 Shares outstanding 80 Income Statement Hero Zero 105 Revenue Cost of Goods Sold 105 30 Operating Expenses 45 EBIT Interest Paid Taxable income Taxes Earnings Available to 24 24 Industry a. Find the following ratios: Hero Current Ratio Quick Ratio Debt Ratio 0.2 Earnings per Share 0.4 ROA ROE 0.03 0.05 Based on the information above, answer the following questions: b. Do the current and quick ratio make sense given each companies strategy? Why? c. Which company has the higher ROA and which one has the higher ROE? Explain why d. After reviewing each of the ratios in part (a) for both companies, Do any of the ratios suggest there may