Calculation of return on capital employed return on capital employed=EBIT/(Total Assets-Current Liabilities) Bolt Bhd =2280000/(164200003040000)=17.04% Lightning Bhd =1960000/(113800001440000)=19.72% Return on Equity=Net income/Shareholders equity Bolt Bhd =1320000/9880000=13.36% Lightning Bhd =1440000/9440000=15.25% Gross profit Margin=Gross profit/Revenue Bolt Bhd =4440000/15160000=29.28% Loghtining Bhd =3580000/12260000=29.20% Net profit margin before tax= Net profit before tax/Revenue Bolt Bhd =1760000/15160000=11.61% Lightning Bhd =1920000/12260000=15.66% Calculation of Current ratio Current ratio=Current assets/Current liabilities Bolt Bhd =3300000/3040000=1.09% Lighting Bhd =2900000/1440000=2.01% Quick Ratio=(Current assets-Inventory)/Current liabilities Bolt Bhd =1720000/3040000=0.56% Lighting Bhd =1640000/1440000=1.14% Asset Turnover = Net sales / Average total assets Bolt Bhd =15160000/16420000=0.92 times Lighting bhd =12260000/11380000=1.08 times Inventory Holding Period=(Average Inventory/Cost of goods sold) 365 Bolt Bhd =(1580000/10720000)365=53.79 Days Lightning Bhd =(1260000/8680000)365=52.98 Days Trade receivables collection Period Trade receivables collection Period=(Average Trade receivable/Sales)*365 Bolt Bhd =(1720000/15160000)365=41.41 days Lightning Bhd =(1360000/12260000)365=40.49 days Trade Payables Payment Period=(Average Trade payables/cost of goods sold)*365 Bolt Bhd =(1920000/10720000)365=65.37 days Lighting Bhd =(960000/8680000)365=40.37 days Earnings per share=(Net Earnings-Preference dividend)/Shares outstanding Bolt Bhd =1320000/6000000=0.22 Lighting bhd =1440000/6000000=0.24 Note: Dividend considered as a equity dividend because not specifically mentioned as preference dividend. Price earning ratio = Current share/Earning per share Bolt Bhd =1.65/0.22=7.5 Lighting Bhd =2.40/0.24=10 Capital gearing ratio=Common stockholders' equity / Fixed cost bearing funds Bolt Bhd =6000000/3500000=1.71 Lighting Bhd =6000000/500=12 Dividend Yield=Annual dividends/Current share price Bolt Bhd =(0.03/1.65)100=1.81% Lightining Bhd =(0.1/2.40)100=4.17% Note- Bolt Bhd =180000/6000000=0.03 Lighting Bhd =600000/6000000=0.1 b) Ratios for the two companies based upon the financial statements for the pervious year (the year to 31 December 2021) were as follows: Taking into account these ratios and thoose .hich you have calculated for the year to 31 December 2022, advise Berani which of the two companies seems to be the better investment. Justify your reasons/advice