The following ratios are available for toolmakers Best Tools, Inc. and Snappy Tools Incorporated, and their industry, for a recent year:

Instructions
(a) Which company is more liquid? Explain.
(b) Which company is more solvent? Explain.
(c) Which company is more profitable? Explain.
(d) Which company do investors favour? Is your answer consistent with your findings in parts (a) to (c)? Explain.

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Best Tools Snappy Tools Industry Average Current ratio Receivables turnover Inventory turnover 6.7 times Debt to total assets Times interest earned 7.6 times Profitability Gross profit margin 0.8 times 0.7 times Return on assets Return on common shareholders' equity Price-earnings ratio Payout ratio Dividend yield 8.1 times 19.2 times 15.4 times