Ludmother question will save this response. Question 1 Consider the financial details of two companies: S No Financial Details Company A 1 Cost of Goods Sold (COGS) 72, 450,000 2 Accounts Payable 22, 900,000 3 Earnings before Interest 16,450,000 4 Sales Revenue 54, 450,000 5 Total Assets 40, 750,000 Company B 81,700,000 25, 450,000 18,750,000 63,900.000 42,900,000 Use the relevant formula from the given formula sheet and determine for each company: 1. APT ii. ROA Declare which company is better for each financial parameter. [12.5] Note: Copy and paste the following table to write your answer. S No Financial Parameter Company A Company B Which company is better? Moving to another question will save this response. Question 2 Consider the financial details of two companies: S No Financial Details Company A 1 Net Income 2,700,000 2 Average Shareholder Equity 12,950,000 3 Interest Expenses 2, 45, 000 4 Rate of interest (Tax Rate) 30% 5 Average Total Assets 42, 750,000 Company B 3,450,000 14,700,000 3,25,000 30% 38, 900,000 Use the relevant formula from the given formula sheet and determine for each company: 1. ROE ROA lii. ROFL Declare which company is better for each financial parameter. [12.5] Note: Copy and paste the following table to write your answer. S No Financial Parameter Company A Company B Which company is better? IET 4563 Supply Chain Strategy and Management . . Formula Sheet ROE = [Net Income / Average Shareholder Equity] 100 = % ROA = {Net Income + [Interest Expense x (1 - Tax rate)]} / Average Total Assets] x 100 = ROA = [Earnings before interest /Sales Revenue] * [Sales Revenue/Total Assets] x 100 = ROFL = ROE-ROA APT = (Cost of Goods Sold / Accounts Payable) = turns/year ART = [Sales Revenue / Account Receivable) = turns/year INVT = (Cost of Goods Sold / Inventories] = turns/year C2C Cycle = No of weeks per year * [-1/APT + 1/ART + 1/INVT] = weeks . *The value may be 'positive' or 'negative' depending upon the input values