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Need 5,6,7 number question answer just... # 03 The information below is taken from the records of two companies in the same industry. The companies
Need 5,6,7 number question answer just...
# 03 The information below is taken from the records of two companies in the same industry. The companies are X Ltd. And Y Ltd. And the data is as follows Particulars Cash Debtors (net) Inventory Plant & equipment TOTAL ASSETS Sundry creditors 8% Debentures Equity Retained earnings TOTAL LIABILITIES Sales Cost of goods sold Other operating expenses Interest expenses Income taxes Dividends X Ltd Y Ltd. (TAKA) (TAKA) 210,000.00 320,000.00 330,000.00 630,000.00 1,230,000.00 950,000.00 1,695,000.00 2,400,000.00 3,465,000.00 4,300,000.00 900,000.00 1,050,000.00 500,000.00 1,000,000.00 1,100,000.00 1,750,000.00 965,000.00 500,000.00 3,465,000.00 4,300,000.00 5,600,000.00 8,200,000.00 4,000,000.00 6,480,000.00 800,000.00 860,000.00 40,000.00 80,000.00 266,000.00 273,000.00 100,000.00 180,000.00 Answer the following questions by making a comparison of one or more relevant ratios Marks 18 1. Which company is using the equity shareholders' money more profitably? 2. Which company is better able to meet current debts? 3. If you were to purchase the debentures of one company, which company's debenture would you buy? 4. Which company collects its receivables faster, assuming all sales to be credit sales. 5. Which company is extended credit for a longer period by the creditors, assuming all purchases (equivalent to COGS) to be credit purchase? 6. How long does it take each company to convert an investment in stock to cash? 7. Which company retains the larger portion of income in the businessStep by Step Solution
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