Question: (a) The following ratios have been extracted from an analysis of the consolidated accounts of three companies North, South and East: Required: Comment on the

(a) The following ratios have been extracted from an analysis of the consolidated accounts of three companies €“ North, South and East:

Required:
Comment on the respective performance of each of the three companies.

(b) €˜The consolidation of financial statements hides rather than provides information.€™Discuss.

North 5% 5 times South 4% 3 times East 3% 4 times Profit/Sales 100 Asset turnover Financial leverage es

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a North is achieving a higher profit margin than South or East with East achieving the lowest margin at 3 North South East i ProfitSales 100 5 4 3 ii ... View full answer

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