Go to the websites of Qantas and Virgin Australia (they can also be found searching in Google) and download the annual report for the financial year ending 30 June 2015. Using the information provided in their Balance sheets and Income statements to answer the following questions: a) Provide a brief discussion on the accounting policies used by both companies. b) What do profitability ratios measure? Calculate the (i) Return on assets and (ii) Return on equity ratios for both companies c) What do liquidity ratios measure? Calculate the (i) Current asset ratio and (ii) quick or acidtest ratio for companies. d) What do debt ratios measure? Calculate (i) debt ratio and (ii) Debt-to-equity ratio for both companies. e) Compare various ratios of both companies and recommend which company is good company for buying shares (investing money into)? f) Comment whether these two companies are performing better or poorly compared to industry. Use the following industry average ratios: Industry averages Return on assets ratio 16.34 Return on equity ratio 41.96 Current assets ratio 2.19 Quick (acid-test) ratio 1.21 Debt ratio 0.45 Debt-to-equity ratio 0.0.65 Assignment 2, page 2 Assignment Instructions:  You must use the correct company and correct year financial reports  You must show all workings Including formulas where applicable  Actual financial reports of both companies must be attached in the appendix section of your assignment  All information sourced from other sources must be appropriately cited and referenced using APA 6th edition referencing style  The assignment work must meet basic academic standards including free of errors, use of appropriate format  The assignment which found to plagiarise will be marked to ZERO (0) and also subject to disciplinary action.  Assignment must be submitted to OLS and also email to me at '[email protected]'.  The submission will be subject to 'turn it in' for similarity check. The allowed similarly report is 15%. You must revise and resubmit until your similarity report comes below 15%.