WEEK 11-ASSIGNMENT ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS The following is a summary of the Financial Statements of two companies dealing in similar products in Ghana The two companies' Statement of Profit or Loss for the year ended 30 September, 2019 Alu Limited Blu Limited GH GH GH GHC Revenue 600,000 600,000 Inventories 96,000 24,000 Purchases 468,000 450,000 Closing inventories (144,000) (36.000) Cost of sales 420.000 438,000 Gross profit 180,000 162,000 Operating expenses (142.200) (127.440) Operating profit 37,800 34,560 The two companies' Statement of Financial Position as at 30 September, 2019 Alu Limited Blu Limited GH GH GHE GHE Non-current Assets: 390,000 240,000 Current assets: Inventories 144,000 36,000 Trade receivables 51,000 12.750 Bank and Cash 15,000 210,000 59,250 108,000 600.000 348,000 240,000 300,000 240,000 48,000 Stated capital Retained profit Current Liabilities: Trade payables Expenses accrued 45,000 15,000 60.000 600.000 42000 _18000 60.000 348,000 Required: a) Calculate the following ratios for each company Gross profit margin ii) Net profit margin Current ratio Acid Test/Quick ratio b) Using the information in (A) above, interpret the results of the ratios