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The financial statements of A limited and B Limited for the year ended 3 1 May 2 0 2 3 are presented below: Both companies
The financial statements of A limited and B Limited for the year ended May are presented below: Both companies are wholesale of cleaning products Statement of Comprehensive Income A Limited B Limited Sales Cost of Sales Gross profit Operating expenses Operating profit Interest expense Profit before Tax Dividend Profit after Tax Statement of Financial Position Fixed Assets Buildings Equipment Current Assets Inventory Debtors Bank Total Assets Equity and Liabilities Share Capital Retained Earnings Current Liabilities Creditors Total Equity and Liabilities REQUIRED: Used the information above to calculate and evaluate the following ratios for both the companies and which you prefer. Where applicable, round off answers correctly to two decimal places: Current ratio Liquidity ratio Debtors collection period Creditors payment period Use the cost of sales figure Stock turnover Return on equity ROCE Asset turnover Total assets Which company would you prefer to invest in and give a reason
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