QQ Selected data for two similar companies in the toy industry are as follows. AA Cash 85.000 250.000 Debtors 137.000 212.000 Stocks 450.000 460,000 Equipment (net) 485.000 627.000 Current liabilities Long-term liabilities Capital and retained earnings 250.000 400,000 507.000 320,000 500.000 729,000 Annual sales Cost of goods sold Salary Other expenses 1,000,000 300,000 150 000 250000 1.500,000 600,000 200,000 175,000 Required: a) Calculate each company's net profit ratio, current ratio, quick ratio, stock turnover ratio and debt ratio (10 marks) b) Which of the two companies, as judged by the preceding information, would you consider as being in a better financial position and why? (5 marks) (Total 15 marks)