QUESTION 3 (8 MARKS) The financial information of Axiata Limited as at 31st December 2020 is presented below. $ Sales 200 000 Purchases 145 000 22 500 Operating income Inventory Accounts receivable 12 500 40 000 Cash 10 000 Current liabilities 25 000 Total liabilities 85 000 Interest expense 12 500 Non-current assets at net book value 60 000 Additional information: 1. 80% of the total sales were credit sales. 2. Accounts receivable and inventory balances at 1st January 2020 were $32 000 and $17 500, respectively. 3. Average total assets at 31st December 2020 was $110 000. REQUIRED: a) Calculate and interpret the following ratios of Axiata Limited for the year ended December 31, 2020. Round-off your answers to two decimal places. i. Acid-test ratio. (2 Marks) ii. Interest coverage. (2 Marks) iii. Total assets turnover. (2 Marks) b) Axiata Limited discovered the following financial ratios of its competitor, Best Technics Company, for the year ended December 31, 2020. Provide comment on the investment in Axiata Limited, as compared to its competitor. (2 Marks) Axiata Limited Best Technics Company 26.67% 22% Return on stockholders' equity Earnings per share (EPS) $1.17 $1.05