QUESTION TWO [25] Extracts of the Staternert of Camprehershe Income toe the year unded 31 Decaminer 2021 and the Statement of Financial Position as at 31 December 2021 are given below lor two compariee tiz. Ash Liniled and Burtan Limited Extract of Statement of Comprehensive Income for thn yoar nnded 31 Docember 2021: Rudtional Infoematien: - Irmenteries as at 31 Decernber 2020 ate as folons: Ash Limked R800 000 Eurten Limited R230000 - All sales and purchases al inventories are cn credii. Required: Compare the pericrmance of Ash Limited and Burton Limited Ibath in same irdustry) with regand to the fallowing ratios and in each case state your observations: 2.1 The sbiity of each company to repay its shot lerm debes withcul relying on sale of its inventories. [5] 2.2 The retum eamed by sherehclders on their investment. |5] 2.3 The cperational etectiveness of each company betore considering interest income, interest experise and income tax. (5) 2.4 Tha e4ectivennss with which the goots for sala have been managed. [3] 2.5 An evaluation of each company's perfomance wion regard to the management of tis trade credtors (7)