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# 03 The information below is taken from the records of two companies in the same industry. The companies are X Ltd. And Y Ltd.

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# 03 The information below is taken from the records of two companies in the same industry. The companies are X Ltd. And Y Ltd. And the data is as follows Particulars Cash Debtors (net) Inventory Plant & equipment TOTAL ASSETS Sundry creditors 8% Debentures Equity Retained earnings TOTAL LIABILITIES Sales Cost of goods sold Other operating expenses Interest expenses Income taxes Dividends X Ltd Y Ltd. (TAKA) (TAKA) 210,000.00 320,000.00 330,000.00 630,000.00 1,230,000.00 950,000.00 1,695,000.00 2,400,000.00 3,465,000.00 4,300,000.00 900,000.00 1,050,000.00 500,000.00 1,000,000.00 1,100,000.00 1,750,000.00 965,000.00 500,000.00 3,465,000.00 4,300,000.00 5,600,000.00 8,200,000.00 4,000,000.00 6,480,000.00 800,000.00 860,000.00 40,000.00 80,000.00 266,000.00 273,000.00 100,000.00 180,000.00 Marks 18 Answer the following questions by making a comparison of one or more relevant ratios 1. Which company is using the equity shareholders' money more profitably? 2. Which company is better able to meet current debts? 3. If you were to purchase the debentures of one company, which company's debenture would you buy? 4. Which company collects its receivables faster, assuming all sales to be credit sales

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