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:
Lemon-Law
Consumer protection laws that provide a remedy for purchasers of cars and other consumer goods that fail to meet standards of quality and performance.
Standards of Quality
Established benchmarks that define the specific requirements, specifications, and guidelines to ensure that materials, products, processes, and services are fit for their purpose.
Remedy
A legal means to enforce a right or redress a wrong, such as damages, injunction, or specific performance.
Implied Warranty
A legal assurance, not expressly stated, that a product or service will meet certain quality and performance standards.
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