02. Given the following balance sheet for two different companies, you are required to a Calculate the following ratios for each company . Current ratio Debt ratio Quick ratio Equity multiplier Debt to equity ratio (40 marks) b. Compare the performance of the two companies based on the results of ratios calculated in part (a) (20 marks) MECAMO TUM_035_01 Page 2 Accounting for Business (BUSS20001) - Spring-21-CW (Assignment 1) - Al-Q A Maha Shop Balance Sheet As of December, 2020 7.300 25.000 3,000 3.000 1.000 29.300 Assets Current Assets Cash Bank Cash Supplies Prepaid insurance Trade Receivable Total Current Assets Non Current Assets: Apartment Intangible Asset Office Furniture Total non-current assets Total Assets Liabilities Current abilities Accounts Payable Interest Payable Wages Payable Salary Payable 65,000 5,700 35,000 126.000 8.200 1,600 3.300 1000 Al-Maha Shop Balance Sheet As of December, 2020 7,300 25,000 3,000 3,000 1,000 39,300 65,000 5,700 16,000 86,700 126,000 Assets Current Assets: Cash Bank Cash Supplies Prepaid insurance Trade Receivable Total Current Assets Non-Current Assets: Apartment Intangible Asset Office Furniture Total non-current assets Total Assets Liabilities Current Liabilities Accounts Payable Interest Payable Wages Payable Salary Payable Total Current Liabilities Non-Current Liabilities Financial debt Bond payable Total Non-Current Liabilities Total Liabilities Equity Capital Net Profit Less: Drawing Total Equity Liabilities+ Equity 8,200 1,600 3,300 10,000 23,100 7,500 6,400 13.900 37,000 32,000 70,000 (13,000) 89,000 126,000 Al-Ward Shop Balance Sheet As of December 2020 15,000 1,000 3,000 11,700 30,700 200,000 7,700 207,700 238,400 Assets Current Assets: Cash Inventory Prepaid marketing expenses Account receivable Total Current Assets Non-Current Assets Land Intangible Asset Total non-current assets Total Assets Liabilities Current Liabilities Accounts Payable Interest Payable Wages Payable Salary Payable Total Current Liabilities Non-Current Liabilities Debenture Bond payable Total Non-Current Liabilities Total Liabilities Equity Capital Net Profit Less: Drawing Total Equity Liabilities. Equity 30,700 17,800 3,300 16,400 68,200 7,500 18,330 25,830 94,030 201,300 47,070 (4,000) 144,370 238,400