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3. The following information is for the year 2018 for ABC and XYZ, which are in the same industry. ABC XYZ RM RM Current assets

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3. The following information is for the year 2018 for ABC and XYZ, which are in the same industry. ABC XYZ RM RM Current assets 20,000 75,000 Non-current assets 40,000 140,000 Current liabilities 8,000 60,000 Non-current liabilities 20,000 130,000 Sales 200,000 850,000 Net income 4,000 10,000 (a) Compute the following: (i) Current ratio (ii) Debt ratio (iii) Return on sales (iv) Asset turnover (v) Return on equity (b) Give a brief explanation of the interpretation of the above calculated ratios

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