Answer one of the following questions : AED 650,000 a- Company XYZ took a loan in 2019 , and the amount was AED 2000,000 with 5 % interest , and the net income before interest was 2020 , the company took another loan , and the amount was AED 2000,000 with 10 % interest , and the net income before interest was AED 800,000 Although the net income increased in 2020 the return on equity ( ROE ) decreased compared to 2019. The number of shares has been the same for the two years Required : As a financial analyst , you have been asked by a client to explain why the ROE decreased in 2020 though the net income increased in the same year Explain your answer The following are the information on the " operating cycle " and " days accounts payable outstanding " for Company 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