Question: 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

Question 4 (7 marks) (Note this question is from the Week

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 $125000 $83950 $149500 Non-current assets Current Liabilities $29300 $11750 Non-current Liabilities $44850 $72500 $106100 $149200 Equity Profit $37500 $26500 Required: A. Calculate the following ratios for A Ltd and B Ltd: i. Current ratio. (1 mark) ii. Return on Assets (ROA). (1 mark) iii. 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)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

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...

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 Current assets...

Question 2 (7 marks) (Note this question is from the Week 8 Tutorial) Your client is a medium-sized manufacturing company and has provided you with its accounting records for the financial year...

Question 1 (7 marks) (Note this question is from the Week 5 Tutorial) Discuss the five (5) principal functions of a modern and efficient stock exchange, which most developed or developing countries...

Question 1 (7 marks) (Note this question is from the Week 4 Tutorial) Imagine that you are a manager in a large entity and need to make a recommendation to the CEO on which tender to accept. The job...

Question 5 (11 marks) [Note this question is from the Week 9 Tutorial] a) In Chapter 9 (Week 9 Tutorial) we discussed the Integration of the Human Resource Management and Payroll databases. In...

Question 5 (11 marks) [Note this question is from the Week 9 Tutorial] a) In Chapter 9 (Week 9 Tutorial) we discussed the integration of the Human Resource Management and Payroll databases. In...

Question 3 (11 marks) (Note this question is from the Week 7 Tutorial) The following information has been extracted from the records of Kakadu Ltd, which sells special camping tents. The company uses...

HC1010assignment 1196793 1-xythos.s3.ap-southeast-2.amazonaws.com/5bfdd02798410/1196793?response-cache-control=private%20620max- Week 7 - Question 2 (10 marks) (Note this question is Q3 in the...

How many times do we need to iterate using the Newton-Raphson method to find the root of the function f(x) = 4x e^2x - 2 to correct 4 decimal places starting with X0 = 0.5 ?

The taxpayer is a resident citizen, married, with gross income from business of P500,000, business expenses with supporting receipts of P40,000 and premiums on health insurance of P3,000. 1. In...

An accounting officer commits financial misconduct if they wilfully or negligently: - Engage in unauthorised or fruitless expenditure. - Fail to comply with financial management norms. - Do not...

What is your least favorite U.S. dialect? Why?

You are a member of a sales team that is opening accounts in Egypt. You are to send a representative from your company to Egypt meet with the Egyptian company counterpart and begin a marketing...

There is a debate across the country as to whether Ebonics and Spanglish are valid languages. Some argue that they are legitimate languages. Others argue that they are slang or jargon used by groups...