Use information in the picture to answer the questions that follow

Company Accounts (Questions) 1. Companies A and B operate in the same market. Study the information which has been extracted from the accounts of these companies for the year ending 31 December 1997. Profit and loss account Company A Company B fm fm Turnover 9900 26400 Cost of goods sold 5500 11550 Expenses Selling 550 5525 Administration 825 2475 Other 330 550 Balance Sheet Fixed assets 7700 11000 Current assets 4700 7325 Current liabilities 2200 3850