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Question:Imagine that you have money to invest. Choose two companies from the same area of business (e.g. Tesco and Sainsbury) and collect the latest set of annual reports for these two firms.Write a report comparing the two businesses and stating the one in which you would chose to invest, giving supporting reasons.The report should include:A comparison of the Profit and Loss Account (Income Statement) and Statement of Financial Position.Ratio analysis.A discussion of the limitations of ratio analysis.Information from other sources e.g. the financial press or comments from the chairman and/or directors’ reports. Include copies of the Income Statement and Statement of Financial Position in the appendix. They are not part of the word count.