in K million) Statement of Financial Position Larfage Dangote Great Wall Cement PLC Cement Ltd Cement Ltd 100 Non-current assets Current assets 100 250 350 100 400 500 425 200 100 150 50 150 350 250 150 uity Term Loan 10% interest rate Current liabilities 425 500 You are a financial advisor to Mr. Ndhlovu who is considering investing in any one of the following three companies in the same cement industry. He considers them to be equal in all regards except for the differences described below. Mr. Ndhlovu has asked you to help him understand the effects of the different working capital strategies adopted by each company. He has provided you with the following information: In each case, Mr. Ndhlasuespect earnings before interest and tax to be 10% of sales. Under normal trading conditions, he would expect annual sales to be twice the present level of current assets. ou may ignore taxation. Required (a) Advise Mr. Ndhlovu which company will provide the best return on equity (b) Discuss what other matters, including risk, which Mr. Ndhlovu should consider when the working capital strategies