The financial statements of MM limited and AS Limited for the year ended 31 January 2022 are presented below: Both companies are wholesale of cleaning products

Statement of Comprehensive Income
	MM Limited	AS Limited
Sales	20,000,000	10,000,000
Cost of Sales	15,000,000	6,000,000
Gross profit	5,000,000	4,000,000
Operating expenses	1,000,000	1,000,000
Operating profit	4,000,000	3,000,000
Interest expense	500,000	300,000
Profit before Tax	3,500,000	2,700,000
Dividend	1,000,000	700,000
Profit after Tax	2,500,000	2,000,000

Statement of Financial Position

Fixed Assets
Buildings	200,000	150,000
Equipment	100,000	100,000
	300,000	250,000
Current Assets

Inventory	2,500,000	2,000,000
Debtors	3,000,000	2,000,000
Bank	1,500,000	1,000,000
	7,000,000	5,000,000
Total Assets	7,300,000	5,250,000
Equity and Liabilities
Share Capital	200,000	100,000
Retained Earnings	5,100,000	3,350,000
	5,300,000	3,450,000
Current Liabilities
Creditors	2,000,000	1,800,000
	2,000,000	1,800,000
Total Equity and Liabilities	7,300,000	5,250,000

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):

1.1 Current ratio	(3)
1.2 Liquidity ratio	(3)
1.3 Debtors collection period	(3)

1.4 Creditors payment period (Use the cost of sales figure)	(3)
1.5 Stock turnover	(3)
1.6 Return on equity (ROCE)	(3)
1.7 Asset turnover (Total assets)	(4)
1.8 Which company would you prefer to invest in and give a reason	(3)