Questions 2 Both Brighter Plc and Effi-power Plc operate wholesale electrical stores throughout south of Yorkshire. The financial statements of each company for the year ended 31 December are as follows: Income statements for the year ended 31st December 2020 HaAsapproved: 15/07/2022 Statements of financial position as of 31Vst December 2020 All purchases and sales were on credit. The market values of a share in Brither Plc and Effipower Plc at the end of year 2020 were 6.50 and 8.20, respectively. A. Calculate the following ratios for both companies: 1. Profitability: (3 ratios) a) Gross profit margin b) operating profit margin c) return on capital employed 2. Liquidity; (2 ratios) a) Current Ratio b) Acid test (Quick ratio) 3. Efficiency; (3 ratios) a) Average inventories turnover period b) Average settlement period for trade receivables C)Average settlement period for trade payables 4. Gearing; (2 ratios) a) Gearing ratio b) Investment Ratio 5. Investment ( 2 ratios) alp/E ratio b)Earning per share B. What can you conclude from those ratios? Compare and comment on the overall performance of these two businesses