(a)[4]
Explain two advantages of using accounting ratios.
(b(i))[14]
Calculate the return on capital employed for the business.
(b(ii))[14]
Calculate the gearing ratio.
(b(iii))[14]
Calculate the income gearing ratio.
(b(iv))[14]
Calculate the working capital cycle, in days.
(b(v))[14]
Calculate the price-earnings ratio.
(c)[4]
Compare the gearing and income gearing ratios for each company.
(d)[3]
Identify the company Chen ought to invest in. Justify your answer.