SECTION D: Ratio Analysis (Total Marks: 25) The following information is extracted from the 2020 financial statements of two companies working in the same industry. Fashion Ltd Beauty Ltd Sales 160,000 196,000 Cost of goods sold (38,000) (48,000) Expenses (90,000) (74,000) Current Assets 10,000 10,000 Current liabilities 8,000 12,000 Long-term loan 24,000 36,000 Share capital and reserves 88,000 32,000 Question 1 For each company, calculate the following ratios: . Use the formula sheet provided. You must round your answers to TWO decimal places. . You are advised to show your workings. There is no requirement to rewrite the formula. i. Gross Profit percentage ii. Return on Capital employed iii. Current ratio iv. Capital Gearing percentage Question 2 Compare and comment on the ratios. a) Using the Return on Capital Employed ratio you have calculated, compare and comment on the performance of the two companies. b) Using your calculations, compare and comment on the Gross Profit margin of the two companies. c) Using your calculations, compare and comment on the capital gearing of the two companies