The following information has been collected from two London-based companies. The accounts are drawn up to 31st December 2021. Profit and Loss Account for the year ended 31st December 2021 (Figures are in E000 ) (Figures are in E000 ) Page 3 of 6 REQUIREMENT: Conduct ratio analyses, compare, and comment on their results and analyse the performance of the companies. ASSUMPTIONS: 1. All sales and all purchases are on credit. 2. Please assume 'inventory', 'accounts receivables', and 'accounts payables' as average as there is no beginning balance available. (Answer any SIX of the following) [05 marks] x 6 Questions =[30 marks] 1. Calculate and analyse any SIX of the following: i. Current Ratio ii. Quick Ratio iii. Operating Profitability Ratio iv. Net Profit Ratio v. Return on Equity (ROE) vi. Inventory Turnover Ratio vii. Receivable Turnover Ratio viii.Payable Turnover Ratio ix. Debt-equity Ratio x. Financial Leverage.

1. The following information has been collected from two London-based companies. The accounts
are drawn up to 31st December 2021. Profit and Loss Account for the year ended 31st December
2021 (Figures are in E000 ) (Figures are in E000 ) Page 3 of 6 REQUIREMENT: Conduct ratio
analyses, compare, and comment on their results and analyse the performance of the companies.
ASSUMPTIONS: 1. All sales and all purchases are on credit. 2. Please assume 'inventory',
'accounts receivables', and 'accounts payables' as average as there is no beginning balance
available. (Answer any SIX of the following) [05 marks] x 6 Questions =[30 marks] 1. Calculate
and analyse any SIX of the following: i. Current Ratio ii. Quick Ratio iii. Operating Profitability Ratio
iv. Net Profit Ratio v. Return on Equity (ROE) vi. Inventory Turnover Ratio vii. Receivable Turnover
Ratio viii.Payable Turnover Ratio ix. Debt-equity Ratio x. Financial Leverage