1.Calculate the following ratios for both Abraxas Ltd and Buscema Ltd:

i.gross profit as percentage of sales;

ii.net profit as percentage of sales;

iii.expenses as percentage of sales;

iv.inventory turnover;

v.rate of return of net profit on capital employed (for the purpose of this question only, take capital as being total of share capitals + reserves at the date of the balance sheet);

vi.current ratio;

vii.acid test ratio;

viii.trade receivable days;

ix.trade payable days.

b.Comment briefly on the performance of the two companies based on the ratios you have calculated, suggesting possible reasons for your observations.