Question: HOLMES INSTITUTE Question 4 (7 marks) (Note this question is from the Week 8 Tutorial) Selected information for two companies competing in the catering industry

HOLMES INSTITUTE Question 4 (7 marks) (Note this question is from the Week 8 Tutorial) Selected information for two companies competing in the catering industry have been presented below. Account A Ltd B Ltd Current assets $55250 $83950 Non-current assets $125000 $149500 Current Liabilities $29300 $11750 Non-current Liabilities $44850 $72500 Equity $106100 $149200 Profit $37500 $26500 Required: A. Calculate the following ratios for A Ltd and BLtd: 1. Current ratio. (1 mark) ii. Return on Assets (ROA), (1 mark) ili. Return on Equity (ROE). (1 mark) B. From your calculations in part A, explain which entity is in a more favourable position. (4 marks, word limit: minimum 120 to maximum 150 words)

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