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– Part 2a and – Part 3 based on the ratio analysis in (2), evaluate the financi

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– Part 2a and– Part 3 based on the ratio analysis in (2), evaluate the financial health of both companies inrespect of their liquidity– Part 4 based on your evaluation in (3), identify which company’s shares you wouldrecommend as the better investment. Provide explanations.1. The report should be presentedin a professional and quality manner.2. Apart from the vertical analyses and computation of financial ratios required in the question, thereport must also discuss the relevant qualitative issues of financial statement analysis for variouspurposes, evaluations and recommendations.3. Relevant headings/sub-headings/sections in the report should be designed appropriately to coverthe relevant issues in the question. Credit will be given for proper identification and organisationof the relevant issues discussed in the report.4. The report should contain a cover page, a table of contents, an introduction, the required tasksand discussion, a conclusion, and a list of references.5. The number of references should be between 5 and 10 (maximum one page) for any materials(academic, business, professional) referenced and cited to support your arguments / concepts /examples addressed in the report. 10% of the assessment is allocated to proper research effortson relevant topics.6. Following settings:• Font style/size: Times New Roman “12”• Page numbers shown on all pages• Line spacing: 1.5 lines (except vertical and ratio analyses with numbers)• Margins: Top (2.5 cm), Bottom (1.5 cm), Left (2.5 cm), Right (2.0 cm)• Paper size: A4

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