Question _(35 marks) The following are information related to Woodlands and Burbank Ltd Companies for the fiscal year ended June 30, 2020. Both companies were setup as a sole proprietorship business. Woodlands Ltd Balance Sheets As of June 30, 2020 Liabilities $18,000 Accounts Payable 86,400 72,900 1,800 Long-term borrowings 179,100 Total Liabilities + Assets Cash Accounts Receivable Inventories Others Total Current Assets $72,000 108,000 180,000 Non-Current Asset: Property, Plant and Equipment Owner's Equity 297,900 Woodland, Capital 297,000 Total Assets Total Liabilities and $477,000 Owner's Equity $477,000 Burbank Ltd Balance Sheets As of June 30, 2020 Liabilities $20,160 Accounts Payable 89,460 71,820 3,780 Long-term borrowings 185,220 Total Liabilities Assets Cash Accounts Receivable Inventories Others Total Current Assets $75,600 126,000 201,600 Non-Current Asset: Property, Plant and Equipment Owner's Equity 351,540 Woodland, Capital 335,160 Total Assets Total Liabilities and $536,760 Owner's Equity $536,760 Income Statement For the Fiscal Year Ended June 30, 2020 Sales Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Net Profit Woodlands $650,000 435,400 $214,600 167,620 $46,980 Burbank $673,920 448,530 $225,390 185,610 $39,780 The ending balance of certain accounts as of July 1, 2020 for both companies: Burbank Inventories Total Assets Accounts Receivable Owner's Equity Woodlands $67,500 $459,000 $79,200 $286,200 $64,260 $521,640 $83,160 $228,600 20 marks) Required: A) Calculate the following 2020 ratios for both companies: 1. current ratio 2. quick ratio 3. inventory turnover 4. average collection period for receivables. State which company you think is the better short-term credit risk. Give reasons. B) Calculate the following 2020 ratios for both companies (ignore income tax): 10 marks) 1. rate of return on total assets 2. rate of return on equity (there were no changes in contributed equity during the year). Which company do you think is the better investment? Why? C) What other analysis may be carried out to help in decision making