2 Kenya Ltd. and Jumbo Ltd. are retailers trading in similar goods and situated in the same area. Their summarized financial statements relating to the last financial year are as follows: Statement of Profit or Loss for years ended 31st December 2020 Kenya Ltd. RM Jumbo Ltd. RM RM RM Sales 40,600 30,500 Less: Opening inventory 3,500 2,700 Purchases 20,500 18,500 Closing inventory (1,700) (1,200) Cost of sales 22,300 20,000 Gross profit 18,300 10,500 Less: Expenses (6,500) (5.800) Net profit 11,800 4,700 Statement of Financial Position as at 31st December 2020 Kenya Ltd. Jumbo Ltd. RM RM Non-current assets 30,800 16.000 Inventory 6,200 2,200 Accounts receivable 14,600 8,500 Cash 8,700 5,300 60,300 32,000 Capital 40,000 21,000 Net profit 11,800 4,700 Bank overdraft 1,000 2,000 Accounts payable 7,500 4,300 60,300 32,000 Required: a. Calculate the following accounting ratios for Kenya Ltd. and Jumbo Ltd.: i. Current ratio. ii. Acid Test ratio. iii. Rate of inventory turnover. iv. Accounts Payable payment period. v. Accounts Receivables collection period. (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) vi. If you are looking for a profitable company, which company would you choose? Explain in detail the reasons. (15 marks) [25 Mark] Please write your answer below