Two companies Fatty and Skinny trade in the same market. Their financial statements for the year ended 31 October 2022 are summarised below:

Statements of comprehensive income for the year ended 31 October 2022

Required: a. Calculate the following ratios for Fatty and Skinny: (State the formulas used for calculating the ratios). (10 marks) i. Gross profit percentage. ii. Asset turnover ratio. iii. Current ratio. iv. Receivables collection period. b. Compare and comment on the performance of the companies as indicated by the ratios you have calculated in part (a). (5 marks)