Study the following final accounts of two companies and then answer the questions that follow. Both companies are shops selling clothing and household items. Income Statement for the year ended December 31st, 2022 X Ltd Y Ltd $ $ $ $ Sales 425,000 289,000 Less Cost of Goods Sold Opening Stock 125,000 55,000 Add Purchases 310,000 180,000 435,000 235,000 Less Closing Stock 189,000 246,000 85,000 150,000 Gross Profit 179,000 139,000 Less Expenses Salaries 21,000 17,500 Directors remuneration 12,000

b. Comment briefly on what you notice when you compare each ratio of the two companies. (Assumptions can be used). State which company appears to be the most efficient, giving what you consider to be possible reasons.