HC1010assignment

1196793 1-xythos.s3.ap-southeast-2.amazonaws.com/5bfdd02798410/1196793?response-cache-control=private%20620max- Week 7 - Question 2 (10 marks) (Note this question is Q3 in the Pre-recorded Tutorial Questions) Selected information for two companies competing in the catering industry is presented in the table below: Account Name Lawson Dawson Current assets $110500 $167900 Non-current assets $250000 $299000 Current Liabilities $58600 $23500 Non-current Liabilities $89700 $145000 Equity $212200 $298400 Profit $75000 $53000 Required: A. Calculate the following ratios for Lawson and Dawson: i. Current ratio. (2 marks) ii. Return on Assets (ROA). (2 marks) iii. Return on Equity (ROE). (2 marks) B. From your calculations in part (A), explain which entity is in a more favourable position. (2 marks) C. Discuss two limitations of ratio analysis as a fundamental analysis tool. (2 marks)