Question 1 The financial statements of XB limited and ST Limited for the year ended 31 January 2022 are presented below: Both companies are wholesale of cleaning products Statement of Comprehensive Income Sales Cost of Sales Gross profit Operating expenses Operating profit Interest expense Profit before Tax 5 400 000 Dividend 1 000 000 Profit after Tax 4 400 000 Buildings Equipment Current Assets Inventory Statement of Financial Position Fixed Assets XB Limited 27 000 000 20 000 000 7 000 000 Debtors Bank 1 000 000 Total Assets 6 000 000 600 000 Total Equity and Equity and Liabilities Share Capital Retained Earnings 300 000 100 000 400 000 Current Liabilities Creditors 3 000 000 3 000 000 2 000 000 8 000 000 8 400 000 200 000 5 800 000 6 000 000 150 000 100 000 250 000 BACHELOR OF BUSINESS ADMINISTRATION YEAR 1 - ACADEMIC AND ASSESSMENT 2 400 000 2 400 000 ST Limited 16 000 000 10 000 000 6 000 000 1 000 000 REGENT BUSINESS SCHOOL (RBS) - JANUARY 2023 5 000 000 400 000 4 600 000 700 000 100 000 3 900 000 2 400 000 2 000 000 1 500 000 5 900 000 6 150 000 4 000 000 4 100 000 2 050 000 2 050 000 [25] 29

Statement of Financial Position RECENT DUSWESS SCHOCL (RBS) - JANUARY 2023 BACHELOR OF BUSANESS AONENISTRATION YEAR 1 - ACADEMEC AND ASSESSVENT 1.1 Current ratio 1.2 Liquidity ratio 1.3 Debtors collection period 1.4 Creditors payment period - (Use the cost of sales figure) 1.5 Stock turnover 1.6 Return on equity (ROCE) 1.7 Asset turnover (Total assets) 1.8 Which company would you prefer to invest in and give a reaso Statement of Financial Position REGENT Busintss SCHOOL (RES) - JNWuave 2023 2 Required: Used the information above to calculate and evaluate the following ratos for both the companies and which you peeter. Where applicabie, round of andwers conectly to two decimal places)