Selected financial data of two intense competitors in a recent year are presented here (in millions)

ABC LTD

XYZ LTD

STATEMENT OF PROFIT OR LOSS DATA

Net sales

$40000

$82000

Cost of sales

(32000)

(65000)

Selling and administrative expenses

(7200)

(13000)

Finance expense

-600

(1000)

Gain on sale of equipment

800

200

Income tax expense

(300)

(1200)

Profit

$700

$2000

STATEMENT OF FINANCIAL POSITION DATA (END-OF-YEAR)

Current assets

$11000

$11000

Property, plant and equipment (net)

9000

17481

Total assets

$20000

$28481

Current liabilities

$5500

$9000

Non-current liabilities

8200

11000

Total equity

6300

8481

Total liabilities and equity

$20000

$28481

BEGINNING-OF-YEAR BALANCES

Total assets

$17504

$26441

Current liabilities

5698

9981

Total equity

6093

10753

OTHER DATA

Average net receivables

$5500

$2200

Average inventory

5000

8000

Net cash provided by operating activities

1000

2500

Required:

a.For each entity, calculate the following: (12 marks)

1. Current ratio.
2. Receivables turnover.
3. Average collection period.
4. Profit margin.
5. Return on assets.
6. Debt to total assets ratio.

(Hint:Use beginning of year information provided to calculate beginning of year balance for total liabilities.)