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The following information is available from the annual reports of Marin Company and Nance Company. Instructions
(a) For each company, compute the following ratios:
1. Current ratio
2. Debt to assets ratio
3. Earnings per share
(b) Based on your calculations, discuss the relative liquidity, solvency, and profitability of the two companies.
Benefit
An advantage or profit gained from something, including direct financial gains or more intangible positive outcomes.
Intrusion
An act of entering into a place or situation where one is unwelcome or not authorized.
Externality
A consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.
Uncompensated Impact
Uncompensated impact refers to effects borne by parties who are not directly involved in a transaction or activity and are not compensated for their losses.
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