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Question 14 You will need to use excel to answer this question and then upload your file. Please ensure that you leave yourself enough
Question 14 You will need to use excel to answer this question and then upload your file. Please ensure that you leave yourself enough time to upload your file responses. It is recommended that you upload your file as you complete the response to the question. Off Road Camping owns and controls two camping supplies businesses, Oz Camping Supplies and Glamping Australia. Both businesses are independently operated. The following information has been collected for each business: Sales revenue Cost of sales Gross profit Less other expenses Profit Cash at Bank Other Current assets Total Assets Current liabilities Total Liabilities Oz Camping Supplies Glamping Australia 1,780,000 1,690,000 962,000 775,000 818,000 915,000 230,000 225,000 588,000 690,000 400,000 550,000 345,000 650,000 2,160,000 2,075,000 495,000 1,010,000 545,000 1,175,000 1. Calculate the gross profit ratio, profit ratio, current ratio and debt to equity ratio for both companies. (2 marks) a. Comment on the performance of each business. Your comments are to include a comparison between each businesses' performance. (4 marks) b. Oz Camping Supplies and Glamping Australia both need to upgrade computer software programs for handling online orders at a cost of $350,000. Should this be financed by borrowing from a bank or using internal funds? Analyse the effect of the different options and make a recommendation for each business. (4 marks)
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