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.
Definitions:
Inventory Turnover
A figure representing the frequency at which a business's stock is both sold and refilled over an assigned period, showing the adeptness of inventory administration.
Accounts Receivable Turnover
A financial metric that measures how efficiently a company collects payments from its customers by dividing total sales by average accounts receivable.
Total Asset Turnover
A ratio that evaluates the effectiveness of a firm's utilization of its assets to produce sales income.
Equity Multiplier
A financial leverage ratio that measures the portion of a company's assets that are financed by its shareholders' equity.
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