Statements of comprehensive income for the year ended 30 June 2021:
	AB Holding	CD Holding
	$'000	$'000
Sales (all on credit)	24,000	14,000
Cost of sales	20,000	11,300
Gross Profit	4,000	2,700
Operating expenses	2,320	1,710
Operating profit	1,680	990
Debenture interest paid	240	90
Loss on asset disposal	20	30
Profit before tax	1,420	870
Taxation	720	450
Profit after tax	700	420
Dividends paid	120	114
Retained profit for the year	580	306

Statements of financial position as at 30 June 2021:
	AB Holding		CD Holding
	$'000	$'000		$'000	$'000
Non-current assets:
Property, plant & equipment		5,000			4,500
Less: accumulated depreciation		1,000			1,560
		4,000			2,940
Current assets:
Inventory	2,000			3,180
Trade receivable	990			1,320
Cash at bank	1,580	4,570		1,560	6,060
		8,570			9,000
Capital and reserves:
$1 ordinary shares	2,000			2,280
Share premium	1,000			520
Retained profit	2,000			3,500
		5,000			6,300
Non-current liabilities:
Debentures		1,200			480
Current Liabilities:
Bank loan	900			900
Trade payables	1,470			1,320
		2,370			2,220
		8,570			9,000

a) Based on the financial statements above, calculate the following financial ratios for both AB Holding and CD Holding: (i) Gross profit margin (ii) Operating profit margin (iii) Net profit margin (iv) Current ratio (v) Quick ratio (vi) Receivables collection period (vii) Inventory turnover period (viii) Payables payment period (ix) Debt-to-equity ratio (x) Interest cover b) Prepare a short report giving your observations on the profitability, liquidity, efficiency (activity) and debt ratios of the two companies.