At the end of the samson egun, fold wong dgn ee and pse down SECTION ONE: Numerical case studies Please answer BOTH questions in section ONE Question one ABC and XYZ are two Telecommunication companies that operate in the UK market XYZ is a mature company that has been serving the UK market for 40 years. Last year, XYZ acquired a competitor company with advanced broadband technology The fruitful acquisition allowed XYZ to extend its customer base and maximise cost-efficiency on the acquired machinery to increase broadband provision to meet the extended Moreover, following the acquisition, XYZ has been able to leverage customer base, ABC is a a young The business model of ABC targets a hat entered the UK market five years ago. multinational accounts mainly pertain to multinational companies that have offices in a niche market of multinational accounts. These the UK or demand stable connectivity with the UK. Given the high reliance on the internet at the present time, the niche market of ABC remains limbed in size but enables the company to charge high prices for its services. The following table provides financial information extracted from the financial statements of these two companies for the year ending 31 Dec 2021 Industry average E000 Account ABC XYZ 000 E000 Fixed Assets Current Assets Turnover (Sales) 8.677 17.578 6,789 144,765 4,678 15,677 105.890 476,345 278,000 Operating Profit 600 22.345 13,567 Current Liabilities 3.970 Inventory 700 120,760 35,767 90,780 29,790 Based on the information above answer the following questions: a) Calculate, for both companies ABC and XYZ, three financial ratios (9) that measure profitability for the year to 31 December 2021. b) Calculate, for each of the three ratios in (a), the industry average (3) for the year to 31 December 2021. c) Based on profitability, compare the performance of the two (6) companies relative to each other, and to the industry average for the year ended 31 December 2021. (Write three to five paragraphs of three to five sentences each.) d) Calculate, for each of ABC and XYZ, two financial ratios that (6) measure liquidity for the year ending 31 December 2021. e) Calculate, for each of the two ratios in (d), the industry average for (2) the year to 31 December 2021. f) Based on liquidity, compare the position of the two companies (5) relative to each other, and to the industry average for the year ended 31 December 2021. (Write two to three paragraphs of three to five sentences each)