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The following is a summary of the balance sheets of two businesses: A and B: A B NCA 40,000 70,000 CA Stock 30,000 50,000 Debtors

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The following is a summary of the balance sheets of two businesses: A and B: A B NCA 40,000 70,000 CA Stock 30,000 50,000 Debtors 45,000 9,000 Bank 15,000 1.000 90,000 60,000 Less: CL (30,000) (30,000) 60,000 30.000 100.000 100.000 Capital Account Opening Balance 80,000 80,000 Add: Net Profit 36.000 36.000 116,000 116,000 Less: Drawings 16,000 16.000 100.000 100.000 A and B have both made a profit of 36,000 for the year. Your task is: 0 Calculate appropriate ratios for commenting on the liquidity of the two businesses. Comment on the results of your two calculations

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