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Question 4 (7 marks) (Note this question is from the Week 8 Tutorial) Selected information for two companies competing in the catering industry have been
Question 4 (7 marks) (Note this question is from the Week 8 Tutorial) Selected information for two companies competing in the catering industry have been presented below. Account Current assets Non-current assets Current Liabilities Non-Current Liabilities Equity Pofit A Ltd $55250 $125000 $29300 $44850 $106100 $37500 B Ltd $83950 $149500 $11750 $72500 $149200 $26500 Required: A. Calculate the following ratios for A Ltd and B Ltd: i. Current ratio. (1 mark) ii. Return on Assets (ROA) (1 mark) iii. Return on Equity (ROE). (1 mark) B. From your calculations in part A, explain which entity is in a more favourable position. (4marks, word limit: minimum 120 to maximum 150 words) Focus
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