(a) The following information was extracted from the financial statements of Sunrise Ltd. and Sunset Lid. in respect of the year ended 30 September 2015: Statement of comprehensive income extracts for the year ended 30 September 2015: Sunrise Ltd. Sunset Ltd. Sh. '000 Sh. '000' Sales 497,000 371,000 Cost of sales 258,000 153,000 Operating profit 138,000 79.000 Interest expense 19,000 Statement of financial position extracts as at 30 September 2015: Sunrise Ltd. Sunset Sh "000" sh 000" Non Current Assets 142000 92000 Current assets: Inventory 100,000 87.000 Debtors 46.000 42,000 Cash at bank 40.000 44,000 Current liabilities 98000 108000 Long term loan 33000 Shareholders fund 197000 157000 Required: For each company, compute the following ratios. (i) Acid test ratio (2 marks) (ii) Inventory turnover (2 marks) (ifi) Average collection period (2 marks) (iv) Return on capital employed (2 marks) (v) Debt equity ratio (2 marks) (c) (i) On the basis of the ratios computed in (b] above, comment on the overall performance of Sunrise Ltd. and Sunset Ltd. and advise which of the two companies would provide better investment. (3 marks) (ii) Explain the possible shortcomings of relying on your analysis in (b) above. (2marks) vate Windo