Down Browser + Webcam Kiranpreet Kaur Kiranpreet Kaur: Attempt 1 Bob's Shoes and Brown's Boots are two organisations operating in the retail industry. The table below provides selected information from their Income Statements and Balance Sheets for the last two financial years. The companies have made a similar profit. Your task is to use ratio analysis to make a more detailed comparison of their relative financial position and performance. Current assets Non-current assets Current liabilities Non-current liabilities Owner's Equity Bob's Shoes 2018 2019 $110 500 $101 060 $250 000 $245 000 $58 600 $60 400 $95 800 $90 600 $206 100 $195 060 Brown's Boots 2018 2019 S161 900 S159 100 $299 000 $286 000 $23 500 $25 040 $143 000 $147 000 $300 400 $273 660 $40 000 Additional information Inventory (included in Current assets) Profit (included in Owner's equity $50 000 $75 000 $76 000 $70 000 $71 000 $68 000 $70 000 Financial Information for 2017 Bob's Shoes $200 000 $300 500 Brown's Boots $250 000 $410 000 Total Owner's equity Total Assets Required: a. Use two ratios to calculate each organisation's liquidity for each year (2018 and Owner's Equity $206 100 $195 060 $300 400 5273 655 $40 000 $50 000 $75 000 $76 000 Additional information Inventory (included in Current assets) Profit (included in Owner's equity $70 000 $71 000 $68 000 $10 000 Financial Information for 2017 Total Owner's equity Total Assets Bob's Shoes $200 000 $300 500 Brown's Boots $250 000 $410 000 Required: b. Use two ratios to calculate each organisation's profitability for each year (2018 and 2019). $70 000 515 000 $71 000 576 000 568 000 510 000 Financial Information for 2017 Total Owner's equity Total Assets Bob's Shoes $200 000 $300 500 Brown's Boots $250 000 SA 10 000 Required: c. Using your calculations from (a) and (b) compare the two organisations with reference to liquidity and profitability. Your answer should also include an explanation of the four ratios used in your calculations