Question 2 Match Ltd and Box Ltd both began operations on 1 January 2020. For illustrative purposes. assume that at that date their statement of financial positions were identical and that their operations during 2020 were also identical. The only difference between the two companies is that they elected to use different accounting methods as can be seen below. (16 marks in total, 1 mark each box) Match Ltd Box Ltd Inventories FIFO Weighted average cost Property, plant and equipment Straight-line depreciation Diminishing balance depreciation Summary financial information for both companies at the end of 2020 ks presented below. STATEMENT OF FINANCIAL POSITION as at 31 December 2000 STATEMENT OF PROFIT OR LOSS for the year ended 31 December 2020 Match Box Ltd Ltd Revenue $250000 $250000 Less: Cost of sales 138000 150000 GROSS PROFIT 112000 100000 Other expenses 43000 53000 PROFIT $ 60000 $ 47000 lockades finance costs of 5.000 Depreciation expense was $10000 Bee Mukh Lad and $20000 for Box. LM. Cash Receivables Inventories Property, plant and equipment (net) Match Ltd $ 20000 50000 52000 55000 177000 30000 45 000 100 000 $177000 Box Ltd $ 20,000 50 000 40000 45000 155 000 Current liabilities Non-current liabilities 30000 45000 0000 $195.000 Requirement: Calculate and interpret the following ratios for each company: Match Ltd Box Ltd 1 Il. m. iv. return on assets return on ordinary equity profit margin current ratio receivables turnover inventory turnover debt ratio. V. vi. vii. + Sheet1