write a report to compare and contrast the financial performance of both companies

write a report

CAM CODE O3 QHWTION 3 Eylain the importance of financial statement analysis to the following: 1. Suppliers 11 mark| 11. Investors [1 mark] H1. Customers [1 mark] IV. Ciovernment [1 mark] V. Employees [1 mark] a) JO)Limited is sccking to grow through acquisition and has identified two unlisted entities. SS Limited and NA Limited, of similar size and operating in the same line of business and in the same country, as potential acquisition targets. IOJO Limited's chairperson has confirmed that both entities are receptive to genuine offers. A board meeting has been scheduled to discuss the potential acquisition targets. JOJO Limited's chairperson has requested that a report be prepared for the meeting which will include analysis of the following five key financial ratios that board members use when considering acquisitions. - Gross profit percentage - Profit before tax as a percentage of revenue - Return on capital employed - Gearing (debtlequity) - Liquidity (current ratio) In addition to the analysis of the five ratios above, the chairperson has requested that other relevant ratios be calculated and analysed if they facilitate comparison of the business environment that SS Limited and NA Limited operate in or provide insights into the structure or efficiencies of the two businesses (Current and Total Asset Turnovers). The most recently published income statements of both SS Limited and NA Limited are presented below, together with their reformulated statement of financial position. Reguired: Write a repon, as requested by the chairperson of JOJO Limited in which you