Chapter 2: Practice questions II Activity 1: Problem Solving Income statement for the year ended 31 December 2020 Items North Ltd (in 000) 52.580 903 S7,677 South Ltd (in 000) $2,000 852 S1.148 865 Sales Cost of Goods sold Gross profit Administration expenses Selling expenses Operating income (EBIT) Finance cost interest expenses Net profit 339 $473 250 $223 500 256 $392 100 292 Balance sheet as at 31 December 2020 Items North Ltd South Ltd (in 000) (in 000) Assets Cash and cash equivalents $200 $400 Account receivables 800 400 Inventories 250 150 Total current assers $1.250 $950 Net fixed Asset Total essay S 3,680 |$4.930 55,300 S6,250 Liability and Equity Liability Account payable S207 S358 Long-term liability 1000 2000 Eguin Capital Share Capital $2,500 Retained earnings 1.223 1.392 Total Liability and equiry $4.930 S6250 Market price per share S10 $12.50 No. of shares I million shares 1.2 million shares 2.500 Required? Calculate the ratios of the two companies