The balance sheets of two competing companies in the same industry are provided below. The companies have approximately the same volume of sales and similar operating capacities. 
Instructions
a) Calculate the debt to total assets ratio for both companies. Which company is more solvent?
b) Based on the information provided, can horizontal analysis be used to determine which company is more profitable?
Definitions:
Neutral Substance
A chemical compound that is neither acidic nor basic in nature, often having a pH level of around 7.
Acidic Substance
A substance with a pH less than 7, which donates hydrogen ions when dissolved in water.
Basic Substance
A fundamental material or compound that is essential for a particular biological function or structure; often refers to simple, key molecules in biochemistry.
Amino Acids
Organic compounds that serve as the building blocks for proteins, essential to numerous processes in living organisms.
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