- 2. I need clarification of the answers below (what are the equations and how to calculate) I also put the question without an answer in the second picture

The answer is marked in red

2- Information for two companies are given below. Calculate ROA and ROE for both (22marks) Cost of Sales: 24.000.000 De6t: \$64 millo Net Profit: 4.000.000 Fruth =$8 mill Short Term Liabilities: 2.000.000 Fquhy $96m.16n Current Ratio: 2 a A incts = Net ankh + STL 3- Comment on the credibility of a compaily that has a Current Ratio of 3 and Leverage Ratio of 70%. 2 . Ibr Is it possible for his company to borrow? If yes, how? If no, what other financing options does this company have? (10 marks)