FA Additional Assignment 2 1. R4 A Aa Ap A AaBbCcl AaBbCcl AaBbCel AaBbCcl A-A Default ListLabel 1 Listlabel 2 Listlabel 3 .ne H-Q 250,000 Cash 85,000 Debtors 137,000 212,000 Stocks 460,000 627,000 450,000 Equipment (net) 485,000 Current liabilities 250,000 400,000 507,000 320,000 Long-term liabilities Capital and retained earnings 500,000 729,000 1,000,000 300,000 1,500,000 Annual sales 600,000 Cost of goods sold 200,000 175,000 150,000 Salary Other expenses 250000 REQUIRED Calculate each company's (1) Net profit ratio, current ratio (2) Quick ratio, return on assets (3) Debtors ratio, stock turnover ratio, and gearing ratio (4) Which of the two companies, as judged by the preceding information, would you consider as being in a better financial position and why