ANSWER IN 10MIN pls

PART B (6 marks) Cairns Ltd and Reef Ltd have provided the following information, which relates to the year ended 30 June 2022. Cairns Ltd Reef Ltd Return on assets 8.80% 12.10% Current ratio 2.00:1 1.35:1 Debt/asset ratio 60.2% 80.4% Profit Margin 7.5% 12.0% Required: Using the above information comment on each company's profitability, solvency and liquidity. In your discussion indicate which ratio(s) would be used to evaluate each category of performance and overall which company has the better performance for each ratio. (6 marks)