Q2. Given the following balance sheet for two different companies, you are required to

1. Calculate the following ratios for each company
   • Current ratio
   • Debt ratio
   • Quick ratio
   • Equity multiplier
   • Debt to equity ratio (40 marks)
2. Compare the performance of the two companies based on the results of ratios calculated in part

(a) (20 marks)

Al-Maha Shop Balance Sheet As of December, 2020 7,300 25,000 3,000 3,000 1,000 39,300 65,000 5,700 16,000 86,700 126,000 Assets Current Assets: Cash Bank Cash Supplies Prepaid insurance Trade Receivable Total Current Assets Non-Current Assets: Apartment Intangible Asset Office Furniture Total non-current assets Total Assets Liabilities Current Liabilities Accounts Payable Interest Payable Wages Payable Salary Payable Total Current Liabilities Non-Current Liabilities Financial debt Bond payable Total Non-Current Liabilities Total Liabilities Equity Capital Net Profit Less: Drawing Total Equity Liabilities+ Equity 8,200 1,600 3,300 10,000 23,100 7,500 6,400 13,900 37,000 32,000 70,000 (13,000) 89,000 126,000 Al-Ward Shop Balance Sheet As of December 2020 15,000 1,000 3,000 11,700 30,700 200,000 7,700 207,700 238,400 Assets Current Assets: Cash Inventory Prepaid marketing expenses Account receivable Total Current Assets Non-Current Assets Land Intangible Asset Total non-current assets Total Assets Liabilities Current Liabilities Accounts Payable Interest Payable Wages Payable Salary Payable Total Current Liabilities Non-Current Liabilities Debenture Bond payable Total Non-Current Liabilities Total Liabilities Equity Capital Net Profit Less: Drawing Total Equity Liabilities+ Equity 30,700 17,800 3,300 16,400 68,200 7,500 18,330 25,830 94,030 101,300 47,070 14,000) 144,370 238,400