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Both Brighter Pic and Effi-power Pic operate wholesale electrical stores throughout sauth of Yorkshire. The financial statements of each company for the year ended 31
Both Brighter Pic and Effi-power Pic operate wholesale electrical stores throughout sauth of Yorkshire. The financial statements of each company for the year ended 31 December are as follows: Income statements for the year ended 31 December 2020 HoA5 Approved: 15/07/2022 Statements of tinancial position as of 31"t December 2020 Ad purchases and sales were on credit. The market values of a share in Erither Fic and Effipower Pic at the end of year 2020 were E6. 50 and E8.20, respectively. A. Calculate the following ratios for bath companies: 1. Profitability: {3 ratico } 2. Liquidity: (2 ratios) 3. Efficiency: (3 ratios) 4. Gearing (2 ratios) 5. Investment | 2 ratios) (32arks) B. What can you conclude from those ratios? Compare and comment on the overal performance of these two businesses. ( 3 marks)
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