Banta Lid is reviewing the financial statements of two companies Zenta Lid and Fanta Lid. The companies trade as wholesalers of fast moving consumer goods in Nairobi CBD. The following are the financial statements. Statement of profit or loss for the year ended 31st October 2020 Zenta Lid Fanta Lid Sh '000' Sh '000' Sh '000' Sh '000' Sales 4000 6000 Cost of sales Opening stock Purchases 200 8000 3200 4,800 Less: Closing sock 3400 5600 400 800 3000 1800 Gross profit Expenses 1000 1200 Distribution cost Administrative cost 200 150 Interest paid 290 250 10 400 Profit before tax 500 800 Taxation 500 400 Net profit for the period 120 90 380 310 Statement of financial position as at 31" October 2020 Zenta Lid Fanta Sh '000' Sh '000' Sh '000' Sh '000' Non-Current Assets Warehouse and office buildings 1,200 5000 Equipment and vehicles 600 1000 1,800 6000 Current Assets Stock 400 800 Trade Debtor 800 900 Sundry debtors 150 80 Cash at bank 100 1.350 1180 Current Liabilities Trade creditors 800) 800) Sundry creditors 80) (100) Bank overdraft 200) Taxation (120) (90) 150 890 1.950 6890 10% Long term loan (4000) 1,950 2890 Share capital 1,000 1600 Revaluation Reserve 500 Retained profit 950 790 1,950 2890 Required: Compare and assess performance of the two companies using ratios that cover their profitability, liquidity and working capital management. (10 marks)