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The following is data of two shops: Brandys Candy ($000) Lylas Burger $(000) Total Current Assets 2,500 1,800 Total Current Liabilities 1,000 1,200 Accounts Receivable
The following is data of two shops:
| Brandys Candy ($000) | Lylas Burger $(000) |
Total Current Assets | 2,500 | 1,800 |
Total Current Liabilities | 1,000 | 1,200 |
Accounts Receivable | 1,250 | 600 |
Inventory | 1,100 | 550 |
Sales Revenue | 8,000 | 6,000 |
Cost of Goods Sold | 6,000 | 4,920 |
Net Profit | 420 | 250 |
Perform the necessary ratio calculations that you as an analyst can use to discuss the profitability and the liquidity of the two shops; which of the two shops will likely to have better profitability and liquidity in the long run? Use the space provided below to list your ratios.
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