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):

QUESTION ONE The financial statements of AA limited and BB Limited for the year ended 30 June 2022 are presented below: Both companies are wholesale of cleaning products 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)