q- a The first step in the interpretation process should be:

Group of answer choices

A review of the auditors report

The calculation of as many ratios as possible

Vertical Analysis of Financial Statements

A general overview of the financial statements to be analysed

b)

The following information is available about two companies, A Ltd and B Ltd.

	A Ltd	B Ltd
Sales	2,000	2,000
Cost of sales	1,000	500
Trade receivable (year end)	250	150

Which of the following statements is correct in making a comparison of company A with company B?

Group of answer choices

Company A has the higher gross profit margin percentage and the shorter trade receivables settlement period

Company A has the lower gross profit margin percentage and the longer trade receivables settlement period

Company A has the higher gross profit margin percentage and the longer trade receivables settlement period

Company A has the lower gross profit margin percentage and the shorter trade receivables settlement period