The following are the summarized financial statements of Ingrid Ltd and Epona Ltd, two firms that operate in identical industries.

The rate of interest on Epona's overdraft is 10 per cent per annum.
Required
a. Calculate three ratios for each company showing profitability and three showing liquidity.
b. Discuss three reasons why a potential investor would choose Ingrid Ltd.
c. Identify three further pieces of information necessary before making the recommendation in (b) above.

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Summarized statements of profit and loss Sales revenue Cost of goods sold Gross profit Overhead expenditure Gincluding inferest Profit for the year Ingrid Ltd Epona Ltd 2'000 000 6,000 7,200 (4,560) 5,616) 1,440 ,584 (1140) ,260) 300 324 Summarized statements of fincncial position ASSETS Non-current assets Current assets nventones Trade receivables Bank 70 1,000 1,200 ,800 720 ,200 190 2,110 3,000 2,900 4,00 Total assets EQUITY AND LIABILITIES Equity Shore copital and retained eornings Non-current liabilities 8% long-term loan Current liabilities Trade payables Bonk overdraf Total current liabilities Total liabilities Total equity and liobilities 1,500 2,160 500 900 040 800 900 1,840 1400 1,840 2,900 4,000