QUESTION 3 John \& Sons and Spencer's are companies in wholesalers of clothing. Below are their financial statements Statement of Financial Dosition ae of 21 nanomhou any Current Liabilities Creditors Bank o/d Dividend Net current asset Fixed assets plus net current assets Loans @10\%) Net asset Shareholders funds (Equity) Share capital (all shares at R1 each) Reserves \begin{tabular}{rr} 100 & 210 \\ 0 & 40 \\ \hline 140 & 100 \\ \hline 360 & 350 \\ & 200 \\ 530 & 500 \\ 200 & 70 \\ \hline 330 & 430 \\ & \\ & \\ & \\ 100 & 180 \\ 330 & 250 \\ \hline \end{tabular} Required Calculate and brieify report on the ratios for the two companies above: 1. Current ratio 2. Acid tast ratio 3. Debtors collection period (in disys) 4. Creditors payment period-(Use the cast of sales figure) 5. Stock tumover 6. Retum on equity (ROCE) 7. Ascet tumover (Total assets) 8. Which company would you prefer to invest in, and give a resson