I have added files

Answer 1
    Ratio
    Business A
    Business B
    Return on Capital Employed
    20%
    17%
    Return on Owner’s equity

    30%
    18%
    Average settlement period for Account receivable
    63 Days
    21 Days
    Average settlement period for Account payable
    50 Days
    45 Days
    Gross profit margin
    40%
    15%
    Profit percentage
    10%
    10%
    Inventory turnover period
    52 Days
    25 Days
1. The return on capital employed and return on equity both are higher for Business A. Thus, Business A is more efficient in utilizing its capital as well as shareholders’ equity for doing its business or making profit. The average account receivable and payable are higher for Business A, which indicates the A’s cash collection policy from credit sales is somehow liberal while at the same time Business A is reluctant in payable settlement. A’s gross profit margin is significantly higher than B’s while at the same time the net income margins of both A and B are same. Thus, Non – operating expenses for A is higher than B. Higher inventory turnover ratio of A shows that Inventory is converting into sales at slower rate than...