Emma Wong is the chief executive of the Star Fish clothing retail chain. The company specialises in producing and retailing designer fashion clothing to the Australasian market. Emma is keen to compare the performance and liquidity of her company with those of another competitor - Zambesi. She obtained a set of published accounts for Zambesi and used ratios to help her in the comparison. These were the figures she used for both companies. Gross profit (2012) Net profit (2012) Sales revenue (2012) Current assets (as at 31/12/12) Inventories (as at 31/12/12) Current liabilities (as at 31/12/12) Starfish ($000) 48.5 24.5 91 11 20 35 Zambesi ($000) 87.0 45.0 138 13 55 60 1. Calculate two profit margins for both companies. Show all workings. 2. Comment on the profitability of both businesses. Justify whether Emma Wong should be pleased about the performance of her own company compared to that of Zambesi. 3. Evaluate two ways in which Emma might attempt to increase the net profit margin ratio for her business. 4. Calculate two liquidity ratios for both businesses. Show all workings. 5. Comment on your results to question 4. 6. Evaluate two ways in which Starfish might be able to improve its liquidity position.