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information from the current year's statement of profit or loss: OHPO Co. RM Sales 1,320,300 Cost of goods sold 948,750 Interest expense 19,500 Income tax

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information from the current year's statement of profit or loss: OHPO Co. RM Sales 1,320,300 Cost of goods sold 948,750 Interest expense 19,500 Income tax expense 36,450 Profit for the year 315,600 You have obtained the financial ratios of WIWO Company, a close competitor to OHPO Co., of which you are also considering to invest. Required: (a) Complete the table below by calculating the stated ratios for OHPO Co. Show all your workings. Round your answer up to 2 decimal places. OHPO Co. Financial Ratios: i. Current ratio li Acid test ratio iii. Account Receivable turnover iv. Inventory turnover V. Average days in inventory vi. Profit margin vii. Return on asset viii. Return on ordinary shareholders' equity ix. Debt to equity ratio X. Debt to total assets ratio WIWO Co. 2.534 1.076 22.92 8.356 43.68 days 21% 39% 55.80% 46.9% 32% (10 marks) Thi As a short term investor, identify the company you consider to be better in terms of liquidity and justify your answer. (2 marks) information from the current year's statement of profit or loss: OHPO Co. RM Sales 1,320,300 Cost of goods sold 948,750 Interest expense 19,500 Income tax expense 36,450 Profit for the year 315,600 You have obtained the financial ratios of WIWO Company, a close competitor to OHPO Co., of which you are also considering to invest. Required: (a) Complete the table below by calculating the stated ratios for OHPO Co. Show all your workings. Round your answer up to 2 decimal places. OHPO Co. Financial Ratios: i. Current ratio li Acid test ratio iii. Account Receivable turnover iv. Inventory turnover V. Average days in inventory vi. Profit margin vii. Return on asset viii. Return on ordinary shareholders' equity ix. Debt to equity ratio X. Debt to total assets ratio WIWO Co. 2.534 1.076 22.92 8.356 43.68 days 21% 39% 55.80% 46.9% 32% (10 marks) Thi As a short term investor, identify the company you consider to be better in terms of liquidity and justify your answer. (2 marks)

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