• Please assist with the attached and below. Kindly provide guidelines.

Required:

Compare the performance of Leo Limited and Virgo Limited (both in same industry) with regard

to the following ratios and in each case state your observations:

4.1 The ability of each company to repay its short term debts without relying on sale of its

inventories.

4.2 The return earned by shareholders on their investment.

4.3 The operational effectiveness of each company before considering interest income,

interest expense and income tax.

4.4 The effectiveness with which the goods for sale have been managed.

4.5 An evaluation of each company.s performance with regard to the management of its

trade creditors.