Question: Non-Current Liabilities 10 % loan Note 160 Current Liabilities Trade payables 240 Interest payable Income tax 140 302 1 220 2400 Required: A. Calculate the

Non-Current Liabilities 10 % loan Note 160 Current Liabilities Trade payables

240 Interest payable Income tax 140 302 1 220 2400 Required: A. Calculate the following SIX (6) ratios for both companies, showing clearly the

ratio formulae and figures used: i. Current ratio ii. Quick ratio (acid

Non-Current Liabilities 10 % loan Note 160 Current Liabilities Trade payables 240 Interest payable Income tax 140 302 1 220 2400 Required: A. Calculate the following SIX (6) ratios for both companies, showing clearly the ratio formulae and figures used: i. Current ratio ii. Quick ratio (acid test ratio) iii. Receivables collection Period iv. Return on capital employed v.Gross profit Percentage vi. Net Profit percentage (21 marks) B. Using the ratios calculated in (A) above, outline four comments in line with areas such as liquidity, solvency, profitability or efficiency that will inform Patrice on the performance and position of Garth's Ltd. and James's Ltd. (4marks)

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