Two similar retail businesses both had a sales turnover of £300,000 in 1984. An extract from the 1984 balance sheet reveals:

A Β
£ £
Stock 20,000 50,000 Debtors 12,000 3,000 Cash 3,000 4,000 35,000 57,000 Creditors 10,000 17,000 25,00 0 40,00 0 What conclusions can you draw from this data?

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A B Stock 20,000 50,000 Debtors 12,000 3,000 Cash 3,000 4,000 35,000 57,000 Creditors 10,000 17,000 25,000 40,000