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a Company XYz took a loan in 2010, and the amount was AED 2000.000 with S% interent, and the net income betsie interent wan
a Company XYz took a loan in 2010, and the amount was AED 2000.000 with S% interent, and the net income betsie interent wan ARD 600 000 in 2020, the company took another loan, and the amount was AED 2000.000 with 10% interest, and the net income before interest was AED B00 000 Athough the net inconve increased in 2020, the return on equity (ROE) decroased compared to 2010. Te number of Myares has been thw sare tor two years Required: As a financial analyst. you have been asked by a client fo explain why the ROE decreased in 2020 thouugh the net income increased wn the same year Explain your answer b- The following are the information on the "operating cycle" and "days accounts payable outstanding" for Compary A. Company B, and Company C. - The operating cycle for Company A is 50 days, and the days accounts payable outstanding is 30 - The operating cycle for Company B is 70 days, and the days accounts payable outstanding is 80. The operating cycle for Company C is 30 days, and the days accounts payable outstanding is 30. Required: Which company of the three companies has the most short-term liquidity problem? Explain your answer
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